A founding team wants to raise venture capital, give equity to early hires, and onboard institutional investors over time. The lesson recommends a specific form for such start-ups. Which form is it and what reasoning does the lesson offer?

1. The lesson devotes a section to start-up choices. 2. Private limited companies allow shareholders, board seats and stock options. 3. LLPs require investors to become partners, which is awkward for venture capital. 4. OPCs cannot take additional shareholders at all and partnerships lack a limited-liability shield. 5. Hence a Pvt Ltd is the recommended vehicle for fast-growing, VC-funded businesses. _Source: ICSI CS Executive Paper 3 (Setting up of Business Entities and Closure) — Lesson 1: Choice of Business Organisation, pp. 2-11._