According to the textbook one of the drawbacks of using venture capital is that?

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1187117

2026-05-16 08:01

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One of the drawbacks of using venture capital, as noted in the textbook, is that it often involves giving up a significant portion of equity in the company, which can dilute the founders' ownership and control. Additionally, venture capitalists typically seek high returns within a relatively short timeframe, which can pressure startups to prioritize rapid growth over long-term sustainability. This may lead to conflicts in vision and strategy between the founders and investors.

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