Question

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 1

The Correct Option is B

The correct option is (B) : VC's disinvest the holdings either to the promoters or in the market