alleryStart learning →Which kind of investor typically backs companies that already have proven revenue, unlike venture capital?
ASeed-stage investors
BBusiness angels
CPre-seed investors
DBuy-out private equity
Answer & Solution
Correct answer: D. Buy-out private equity
Buy-out private equity invests in firms with proven revenue, whereas venture capital backs early stage companies and helps manage them.
Keep practising Startup Company
Browse all Startup Company questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
In prize draw crowdfunding, what does a donor receive?Venture capital is best described as a subdivision of which kind of investing?Why can scalability make a startup attractive to investors?Peer-to-peer lending, also called crowdlending, belongs to which crowdfunding type?In equity crowdfunding, what does a backer receive in exchange for the money pledged?Title II of the US JOBS Act let startups publicly advertise securities provided that only After the US Securities Act of 1933, startup investing wasY Combinator's 2005 accelerator paired seed funding with