Official Solution:

Before its bankruptcy in 2008, Goldman Sachs Inc. financed Crystal Technologies, a tech company, as a venture capital investment and they would withdrew all their funding only after a long and comprehensive analysis of the bankrupt tech company’s account books.

A. Before its bankruptcy in 2008, Goldman Sachs Inc. financed Crystal Technologies, a tech company, as a venture capital investment and they would withdraw all its funding
B. Before its bankruptcy in 2008, Goldman Sachs Inc. had financed Crystal Technologies, a tech company, as a venture capital investment and withdrew all its funding
C. Before its bankruptcy in 2008, Crystal Technologies, a tech company, had been financed by Goldman Sachs Inc. as a venture capital investment and the investor withdrew all its funding
D. Before its bankruptcy in 2008, Crystal Technologies, a tech company, was financed as a venture capital investment by Goldman Sachs Inc., which withdrew all its funding
E. Before its bankruptcy in 2008, Crystal Technologies, a tech company, was a venture capital investment of Goldman Sachs Inc. , who withdrew all its funding

The original sentence begins with a modifier ("Before its bankruptcy ") that clearly describes Crystal Technologies, though the subject of the main clause is Goldman Sachs. "They" has no grammatical antecedent and "would" is not a proper tense here (the simple past is required).

1. This choice is incorrect as as explained above.
2. Goldman Sachs should not be the recipient of the modifier "Before its bankruptcy.”
3. Even though the sentence is grammatically correct, the use of "before"and the past perfect together in a sentence is redundant. In the absence of answer choice D, (C) would have been the best choice.
4. Correct. This correctly places Crystal Technologies as the recipient of the opening modifier. The simple past is correctly used as the sense of one action happening before another in the past can be sufficiently expressed by the use of the word “before”.The relative pronoun“which”correctly modifies Goldman Sachs Inc…
5. The use of “who” for a company is inappropriate. This choice also slightly modifies the meaning of the sentence by changing “Crystal Technologies as a venture capital investment” to “Crystal Technologies was a venture capital investment”.

Answer: D
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The original sentence begins with a modifier ("Before its bankruptcy ") that clearly describes Crystal Technologies, though the subject of the main clause is Goldman Sachs. Moreover, the verb "financed" is in the simple past when it would be better in the past perfect (two past actions, one of which was earlier) or simple past. Finally, "they" has no grammatical antecedent and "would" is not a proper tense here (the simple past is required).

1) --> The original sentence clearly modifies goldman sachs and not crystal technologies

Before its bankruptcy in 2008, Goldman Sachs Inc. financed Crystal Technologies, a tech company, as a venture capital investment and they would withdrew all their funding only after a long and comprehensive analysis of the bankrupt tech company’s account books.

2) In the correct answer you state that the usage of past tense is correct - Past perfect is redundant with BEFORE, however, in the explanation why original sentence is wrong you state exactly the opposite.

I think there is clearly something wrong with the explanations of both corecct and incorrect answer choices.

Dear moderators, could you shed some light on this one, I think it would be interesting for all of us.

Thanks in advance.

I too think C is better than D here. We have 2 actions and need to show one occurs before the other so the use of past perfect is required.

in D) Before its bankruptcy in 2008, Crystal Technologies, a tech company, was financed as a venture capital investment by Goldman Sachs Inc., which withdrew all its funding....

There is no way of saying 'financed' and 'withdrew' occur in different timeframes. Before modifies the action of bankruptcy (as in financed and withdrew happened before bankruptcy), but there is nothing saying that financing happened before the 'withdrew all its funding action'. So C is actually better suited in this question.

Am I missing anything?

There is no clear explantions or replies to anyof the verbal quesions in gmat forum. And , the doubts remain doubts forever for people who depend only gmat club to study .. Wish if some experts could address the queries posted in the gmatclub questions.

Explanation states that the verb "financed" is in the simple past when it would be better in the past perfect . A little after that explanation for option choice C states that the use of "before"and the past perfect together in a sentence is redundant.

Kindly correct the explanation.

Thank you pointing out - explanation has been corrected.

I know my doubt is silly but still,

there are two its in the sentence and both refers to two different nouns , so it is correct ?

I think D is better. C cannot be the answer because past perfect tense along with the word "before" is redundant or incorrect.

Discussed in detail
https://gmatclub.com/forum/qotd-before- ... fl=similar
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There was a difference between A and given sentence which was underlined.

Yep. The given sentence said withdrew and Option A says Withdraw.

Moderators please fix this typo. Thanks!
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hello ,

Before its bankruptcy --Why do you think it is modifying the Crystal Technologies ? It can modify the Bank also .

could you please share some light why it is modifying only Crystal not Bank ?

Before its bankruptcy in 2008, Goldman Sachs Inc. financed Crystal Technologies, a tech company, as a venture capital investment and they would withdraw all their funding only after a long and comprehensive analysis of the bankrupt tech company’s account books.

Modifier error: Bankruptcy happened to the tech company and not GS. - the GS did the long and comprehensive analysis of the bankrupt tech company’s account books.

Usage of they: It does not coin to either Goldman Sachs Inc. or Crystal Technologies, a tech company. - Pronoun reference error.

The sentence structure is incorrect as only and (which is one of the F.A.N.B.O.Y.S.) is used to connect 2 independent clauses(IC).

A comma(,) + one of the F.A.N.B.O.Y.S. is one of the correct ways to connect the 2 ICs.

The 2 ICs:

1) Goldman Sachs Inc. financed Crystal Technologies ...
2) they would withdraw all their funding ...

Modifier error: Bankruptcy happened to the tech company and not GS.

The sentence structure is incorrect as only and (which is one of the F.A.N.B.O.Y.S.) is used to connect 2 independent clauses(IC).

A comma(,) + one of the F.A.N.B.O.Y.S. is one of the correct ways to connect the 2 ICs.

Correct usage of which to refer to GS; The sentence structure is also correct.

Usage of who to refer to inanimate things such as the company is incorrect.

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I hope this will suffice: https://gmatclub.com/forum/v01-184759.html#p2232422
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I think this is a poor-quality question and I agree with explanation. At the end of the underlined part of the text is written "they would withdrew all THEIR funding" meanwhile in answer choice A is written "they would withdrew all ITS funding"

I think this is a high-quality question and I agree with explanation.

GMATNinja - would you be able to provide us with a better explanation here? Meaning wise, C, D and E all three feel correct.

I think this is a poor-quality question and I don't agree with the explanation. Hi,
The original sentence speaks about bankruptcy followed by GS. Shouldn't we anchor that. How will I get to know that it is modifying CT.

If you read just below lines -
Goldman Sachs Inc. financed Crystal Technologies, a tech company, "as a venture capital investment"

Goldman Sachs Inc. did something as a venture capital investment ? It says that though it is investing in some other company, Goldman Sachs Inc. itself
is a venture capital investment.

So from here we have got a sense that, it is Crystal technologies which is getting investment (venture capital investment by Goldman Sachs) and Goldman Sachs Inc. is a venture capital investing company.

Only option D conveys this meaning in most precise way.