Trevon is opening a cookie bakery in his small town. He is saving the funds that he needs to open his business and is considering crowdsourcing the last $10,000. He has already saved $60,000 to buy the needed equipment and get through a few slow months. A friend suggests that he find a venture capitalist. Is this a good suggestion?

Question

(1 point)
Responses

No, venture capitalists are only for tech businesses.

No, venture capitalists are only for tech businesses.

No, venture capitalists tend to invest in higher risk businesses.

No, venture capitalists tend to invest in higher risk businesses.

Yes, they will likely want to invest much more than the $10,000 he needs.

Yes, they will likely want to invest much more than the $10,000 he needs.

Answer 1

The most appropriate response is:

No, venture capitalists tend to invest in higher risk businesses.

Venture capitalists typically seek opportunities with the potential for significant returns, usually in industries deemed as high-growth and high-risk, such as technology. A cookie bakery may not align with the typical profile that attracts venture capital.