What happens if a venture capitalist invests in a company that does not end up making much of a profit?

(1 point)
Responses

The venture capitalist loses the money invested.

The venture capitalist loses the money invested.

The venture capitalist can sue the company in court.

The venture capitalist can sue the company in court.

The venture capitalist can take over and run the company.

The venture capitalist can take over and run the company.

The venture capitalist will provide more funds to save the company.

1 answer

The correct response is:

The venture capitalist loses the money invested.

If a company does not end up making much of a profit, the venture capitalist may not see a return on their investment, and in some cases, they may lose the money that was invested. Venture capital investments are typically high-risk, and not all investments yield positive returns.