Starting up business has higher risks compare to businesses that needed funds for expansion. To make sure that both parties are secured, it must be protected by agreements bounded legally, that is also one of the reasons why venture capitalists create firms to promote protection and security to both parties.
Investors in the business play a great role in making your business successful. They many not know much about the products and services they offer but presenting it and boosting their interest will make them agree to release funds for your business.
VC or Venture Capital for more details.
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