An important right that venture capitalists receive in connection with their investment is:
Answer: (c), liquidation rights
"Liquidation rights" refers to the rights of a security holder in the event of a liquidation of a company. In venture capital preferred stock financings, liquidation rights give the holders preferred rights to the assets of the corporation in the event of a liquidation of the company. In venture capital financings, the liquidation rights also typically apply in cases of change of control of the company, deeming such a change to be a liquidation for purposes of the rights of the preferred holders.
