Correct Answer: It is not. It is just a small factor in the decision. Profitability is most important.
Explanation:
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More Venture Capital MCQ Questions
Why would a venture capitalist prefer equity to debt?
Why don't the investors in venture capital firms invest directly in the target companies rather than investing in a venture capital firm as an intermediary?
Why does corporate structure matter when the investment is for equity?
Why would specialized consultants be hired for the final stage of the due diligence process?
Why is the venture capitalist in charge of the drawing up of the term sheet and not the target company?
Which one would be considered an exit strategy?
What is the term sheet used for once it is agreed upon and signed?
What is a 'first round' investment?
How much in funding, in general, will an investor want to invest?
What options does a venture capitalist have when holding convertible debt?