In the Venture Capital Limited Partnership model, the main investors are angel investors.Group of answer choicesTrueFalse
Question
In the Venture Capital Limited Partnership model, the main investors are angel investors.
- Group of answer choices
- True
- False
Solution
Answer:
The statement is False.
Explanation:
In the Venture Capital Limited Partnership model, the main investors are typically institutional investors, such as pension funds, endowments, and family offices, rather than individual angel investors. Angel investors often invest at an earlier stage, providing capital to startups before they reach the venture capital stage. Venture capitalists then come in to fund companies that have typically moved past the initial development phase and show potential for growth.
Thus, while angel investors play a crucial role in the funding ecosystem, they are not classified as the main investors in the limited partnership model of venture capital.
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