Question

******please use your keyboard , i need new and long answers******

Discuss how venture capitalists reduce their risk when investing in startup businesses. Justify your answer citing appropriate examples from Saudi Firms.

You have to comment on two of your classmates also.

Answer 1

According to the above-given question, the solution follows as that there are so many paths that are there for a venture capitalist to decrease their risk of capital amount.

for examples :

Portfolio Management

Stage Diversification

Time Diversification etc,

Since it is going to be a startup those risk management paths are very crucial.

For Example, A person desires to invest in a startup business he can use any path to reduce the risk. And it's totally based on timely performing businesses.