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Entrepreneurs are not required to pay back venture capitalists in the traditional sense of a loan repayment or contractual obligation. Instead, VCs receive a return on their investment through an ownership stake in the company. If the startup is successful and achieves an exit, such as an acquisition or IPO, the VCs will receive a part of the proceeds based on their ownership percentage. If the startup fails, the VCs lose their investment, and the entrepreneurs are not personally liable for repaying the funds.
Understanding Market Dynamics.More information https://financial-equity.com/investment/invest-in-stocks/can-you-lose-more-than-you-invest-in-stocks-understanding-risk-in-the-stock-market/
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Pitching for Pre-Seed Funding.
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