Final answer:
The claim that venture team members typically come from the same functional area is false; they are often interdisciplinary to leverage diverse expertise in a startup. Angel investors and venture capitalists mitigate risk by knowing the team and plan well.
Step-by-step explanation:
The statement that venture team members usually come from the same functional areas within the firm is False. In the contemporary business environment, with flat organizational structures, the composition of venture teams is typically interdisciplinary. This approach encourages a collaboration of diverse perspectives and skills, which is particularly beneficial in the context of a startup, where cross-functional expertise can prove crucial in addressing the multifaceted challenges such ventures face.
For a startup firm, the early stages are risky and often the firm is little more than an idea on paper. Founders who invest their own money indicate confidence in their venture. Angel investors and venture capitalists play a key role in the formation of new firms, often by closely understanding the managers and the business plan, thus mitigating some degree of risk that comes from imperfect information.