Almost Without Exception, Professional Venture Investors Demand That Some Equity

question 18

True/False

Almost without exception, professional venture investors demand that some equity or deferred equity compensation be structured into any valuation.

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Definitions:

Substantially Frustrated

A condition in contract law when an unforeseen event undermines the purpose of the contract, justifying its termination.

Basic Assumption

A fundamental belief or principle that is accepted as true without proof.

Commercial Impracticability

A defense in contract law that can release parties from their obligations if an unforeseen event makes the fulfillment of the contract unreasonably difficult or expensive.

Code

A system of principles or rules designed to regulate practices and conduct within a particular activity or sphere.