When considering different ways to raise capital for a new business, what is one key advantage of using venture capital compared to taking out a bank loan?

Venture capital provides funding without requiring immediate repayment, but it often involves giving up equity in the company.

Bank loans typically include more flexible repayment terms and no need for a detailed business plan.

Venture capital involves no financial risk and does not require any business plan or financial projections.

Bank loans offer higher amounts of funding but usually require no collateral or interest payments.