Corporate Venture Capital Funds operate on a different and often longer investment time frame than venture capital funds that have multiple limited partners because corporate venture capital funds are willing to hold investments much longer as their investments return strategic value to the parent company (sole limited partner). True False Venture Capital with many limited partners must consider that the limited partners are expecting to receive cash compensation between 7-10 years after their initial investment. This means the General partner must make investments that are expected to go public or be acquired in this time frame. True
Corporate Venture Capital Funds operate on a different and often longer investment time frame than venture capital funds that have multiple limited partners because corporate venture capital funds are willing to hold investments much longer as their investments return strategic value to the parent company (sole limited partner). True False Venture Capital with many limited partners must consider that the limited partners are expecting to receive cash compensation between 7-10 years after their initial investment. This means the General partner must make investments that are expected to go public or be acquired in this time frame. True
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Corporate Venture Capital Funds operate on a different and often longer investment time frame than venture capital funds that have multiple limited partners because corporate venture capital funds are willing to hold investments much longer as their investments return strategic value to the parent company (sole limited partner).
True
False
Venture Capital with many limited partners must consider that the limited partners are expecting to receive cash compensation between 7-10 years after their initial investment. This means the General partner must make investments that are expected to go public or be acquired in this time frame.
True
False
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