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An explanation of venture capital and IPO's.

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Can you please explain the difference between obtaining funds from a venture capital firm and engaging in an IPO? Explain how the IPO may serve as a means by which the venture capital firm can cash out.

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This answer will give you a brief description of the difference between obtaining funds from a venture capital firm and engaging in an IPO.

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The main difference is that obtaining funds from a venture capital firm keeps the company privately held. Venture capitalists will usually require a position on the board of directors to have some control over the decision ...

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