Assertion: Entrepreneurs wanted to raise Venture Capital must remain vigilant about sharing information with venture capitalists that are investors in their competitors.
Reasoning: As part of the due diligence process, most venture capitalists will require significant detail with respect to a company's business plan. Most venture capitalists treat information confidentially, but as a matter of business practice, they do not typically enter into non–disclosure agreements because of the potential liability issues those agreements entail.
Reasoning: As part of the due diligence process, most venture capitalists will require significant detail with respect to a company's business plan. Most venture capitalists treat information confidentially, but as a matter of business practice, they do not typically enter into non–disclosure agreements because of the potential liability issues those agreements entail.
Answer & explanation
Correct answer: option 1
Unlike public companies, information regarding an entrepreneur's business is typically confidential and proprietary. As part of the due diligence process, most venture capitalists will require significant detail with respect to a company's business plan. Entrepreneurs must remain vigilant about sharing information with venture capitalists that are investors in their competitors. Most venture capitalists treat information confidentially, but as a matter of business practice, they do not typically enter into non–disclosure agreements because of the potential liability issues those agreements entail. Entrepreneurs are typically well-advised to protect truly proprietary intellectual property.