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Generally, the higher the risk involved in investing, the more investors tilt their preferences toward preferred equity and the higher is the cost of common/ordinary

Generally, the higher the risk involved in investing, the more investors tilt their preferences toward preferred equity and the higher is the cost of common/ordinary shares compared to preference shares. In our taxonomy of risks, which specific risks do you think tilt Venture Capital investors (investors in early stage companies) toward almost never investing in common shares? Explain your answers.

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