Lamar has been experimenting in his garage and now has a product he feels could be successfully marketed. A venture capitalist (VC) has offered to finance the development of this product until it reaches the manufacturing and marketing stage. Which of the following is true about this offer?

		Lamar is borrowing the capital from the VC.
		VC will take an ownership stake in the company in exchange for the capital.
		The VC will become the CEO when the company goes public.
		"Lamar and the VC are forming a syndicate, since the risks are very high. "