If an entrepreneur receives $275,000 from venture capitalists in exchange for stock,what do the investors receive in return?

A) royalties from future sales
B) equity in the business
C) access to the first round of product
D) guaranteed board appointments

Venture capitalists invest in startups in exchange for equity in the business, meaning they receive a share of ownership in the company. In this case, the investors would receive stock in the entrepreneur's business worth $275,000. They would then hope to see a return on their investment as the company grows and eventually goes public or is acquired. Options A, C, and D are not typically part of a venture capitalist's investment agreement.