Question
Entrepreneurship Question on Sources of Business Finance
Venture capitalist look for an exit from the business in the time frame of typically 3-7 years. Identify the way venture capitalist (VC) exit within the time frame from the business where they are investing?
A
VC's have a continuous involvement in the business so they do not exit.
B
VC's disinvest the holdings either to the promoters or in the market
C
VC's invest in the early stage and exit in the pre-public stage by disinvesting their holdings to the promoters
D
VC's exit after selling the shares in the market
Answer
VC's disinvest the holdings either to the promoters or in the market
Explanation
Solution
The correct option is (B) : VC's disinvest the holdings either to the promoters or in the market