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Venture Capital MCQs

Why do venture capitalists typically not sign "non disclosure agreements" which protect the target companies from the venture capitalists stealing their idea?

Target companies often write the

Target companies try to trick the venture capitalists into signing binding agreements.

It is time consuming as the venture capitalist has to talk to a number of companies, and the companies have to make sure the venture capitalist is not in the business of stealing ideas and launching them on their own.

It is not legally required; so they refuse to sign.

Answer

Correct Answer: It is time consuming as the venture capitalist has to talk to a number of companies, and the companies have to make sure the venture capitalist is not in the business of stealing ideas and launching them on their own.

Explanation:

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