Accept direct investments from individual investors

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VC funds in the us generally do not accept direct investments from individual investors who are not already very wealthy even though many individuals would like to invest in VC. The reasons hey don’t accept such investments include1. Because investments are made by capital commitment ,VCs only want to deal with investors who can be relied upon to honor their capital commitments. 2.They want to be sure the ordinary individual investors do not get to share in the good deals the VC general partner finds. 3 government regulations make it hard for VC funds to accept investments from most Individuals True, false, uncertain, explain.

Reference no: EM131051023

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