Which of the following is a major difference between banks and venture capitalists as categories of private financing?
◦ Unlike banks, which recruit investment specialists, venture capitalists are private investors without any specialized investment skills.
◦ Unlike banks, which provide investment for high-risk businesses, venture capitalists won't lend money to a start-up that hasn't established a successful record of accomplishment.
◦ Unlike banks, which don't require collateral, venture capitalists provide investments only when an entrepreneur puts up marketable collateral.
◦ Unlike banks, which only provide money, venture capitalists also provide management expertise.
◦ Unlike banks, which are extremely focused and selective in giving loans, venture capitalists are less focused and provide loans to a large number of start-ups.