Question: Why do venture capitalists make quick decisions on the infeasibility of some business plans? When a business plan is not quickly determined to be infeasible,

  1. Why do venture capitalists make quick decisions on the infeasibility of some business plans? When a business plan is not quickly determined to be infeasible, what happens next and why?

  1. Is the compensation paid to venture capitalists (e.g. 2% management fee and 20% carried interest) reasonable? What are a funds investors buying with this compensation?

  1. Why are venture capital funds typically organized as limited partnerships? In particular, why are they private firms instead of public firms?

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