Firms classified as being part of the sharing economy and collaborative consumption are still considered too risky to attract substantial venture capital investment. True or False

Question

Business

Carmen Tran

1 October, 02:13

Firms classified as being part of the sharing economy and collaborative consumption are still considered too risky to attract substantial venture capital investment. True or False

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Answers (1)

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Graham Russo · Answer 1

False

Explanation:

The collaborative consumption of goods and services based on a peer to peer model. As its, a capitalist economy has many active producers, and sellers on one side and passive consumers on the other. The sharing economy is based on the access to the shared goods and services. Poses risks to the venture capital that have a high growth potential. As the startups face uncertainty the venture capital can lead to a high level of failure. Example of the merges and acquisitions and joint ventures.