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.

Yes, this is exactly the kind of innovated business venture capitalists prefer.

Answer 1

The most appropriate response is:

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

Venture capitalists generally look for high-growth potential opportunities and often prefer tech startups or businesses with scalable models. Given that Trevon is starting a cookie bakery, it may not align with the typical perfil of a business that attracts venture capital investment, which tends to be higher-risk ventures in sectors like technology.