Final answer:
Venture Capitalists face hurdles such as high risks, limited liquidity, and a need for control. Small companies may not guarantee quick profits, making VCs seek greater control to lower investment risks, but this can challenge liquidity and long-term strategy alignment.
Step-by-step explanation:
The hurdles for Venture Capitalists (VCs) to invest are primarily due to high risks, limited liquidity, and the desire for substantial control over the company's management and strategy. Small companies may opt to issue stock over bonds to avoid the obligation of interest payments, which can drain cash resources. Yet, since these small companies might be earning little to no profits and their future success is uncertain, there is a high risk involved for investors. Venture capitalists, being private investors, typically seek to mitigate this risk by maintaining a significant share and influencing company decisions, thus requiring a level of control that can sometimes be more than what the company's founders are willing to give.