Question:Why does a venture capital firm require a substantial amount of equity for the investment? 

A According to the risk — reward concept, they deserve a large return on their investment as they are taking on a substantial risk. 
B Because they control the negotiations and hold companies hostage for getting more equity. 
C Because they are allowed by law to hold as much as possible. 
D Because it reduces their tax implications through holding more investment. 

+ Answer
A 

+ Explanation
Answer not sure

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Md. Habib Ullah

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