Venture Capital Quizzes-Venture capital firms typically

Answer to Quiz

Venture capital firms typically earn 20%-30% of the profits generated from a venture capital fund, which is referred to as a:

Answer: (b), carried interest
The general partners of venture capital funds are typically compensated in two waysâ€”(a) a 2% - 2 Â½% annual fee based on funds under management and (b) an interest typically equal to 20% to 30% of the profits generated by the venture fund, referred to as a "carried interest."

Next Quiz:

An important right that venture capitalists receive in connection with their investment is:

(a) Interest payments
(b) Right to repayment of principal invested
(c) Liquidation rights
(d) Common stock

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Bridge Financing

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