Venture capital firms provide funding for new and fast$-$growing firms. In exchange for the necessary cash, venture capitalists acquire ownership of the firm. This ownership, by necessity, dilutes the ownership of the original entrepreneur, sometimes reducing the original owner's position to less than $50\%$ or a minority. Venture capitalists usually maintain a relatively active role in managing the firm or advising the existing management. They frequently earn a bad reputation for making cuts to the firm to make it leaner or for abusing the entrepreneur with the original idea.

What are the pros and cons of venture capital funding from the business owner's perspective?

What are the pros and cons of venture capital funding from the venture capitalist's perspective?

The remaining ownership split is one of the most critical components of a venture capital deal. How would both parties approach this decision to ensure that it is "fair?"