Final answer:
Venture capitalists are motivated by potential returns and invest in high-growth companies with exit strategies. They realize their returns through IPOs or acquisitions.
Step-by-step explanation:
Venture capitalists are motivated by the potential for significant returns on their investments because they understand that while most small startups may fail, a few successful ones can generate substantial profits. They invest in companies with high-growth potential and viable exit strategies because these factors increase the likelihood of a successful return on investment. Venture capitalists realize their returns through IPOs or acquisitions, where they sell their stake in the company to the public or another larger company, respectively.