Please watch the video titled \'venture capital explained\' and then answer the

Question

Please watch the video titled 'venture capital explained' and then answer the following question:

If Jack has an innovative idea but not the financial means to commercialize the idea without the help of Venture capitalist Gini, then what would be a fare split of ownership between them assuming that Jack's idea's fair market value is estimated to be 10 million dollars and Gini is chipping in $20 million to commercialize the idea? Out of two exit strategies (sell the venture to a third party or go public by implementing Initial Public Offering) which one is suitable in a particular situation as depicted in the video?

Explanation / Answer

Selling venture to third party is best option for jack instead of initial public offering

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