Question 1

Angel investors are eligible to invest as long as they are accredited investors.

Accepted Answer

A) True 
 B)False

Question 2

The term ______ refers to a rigorous process that evaluates an investment opportunity prior to a deal being finalized.

Accepted Answer

A) investment investigation 
B) valuation 
C) due diligence 
D) investor assessment 
A) investment investigation 
B) valuation 
C) due diligence 
D) investor assessment

Question 3

This action allows the stock to be purchased on the open market and gives investors a chance to get a return of cash.

Accepted Answer

A) liquidation 
B) IPO 
C) exit plans and clauses 
D) company registration 
A) liquidation 
B) IPO 
C) exit plans and clauses 
D) company registration

Question 4

If a VC offers you $2 million for a third of your company,what was your pre-money valuation?

Accepted Answer

A) ~$2 million 
B) ~$3 million 
C) ~$4 million 
D) ~$6 million 
A) ~$2 million 
B) ~$3 million 
C) ~$4 million 
D) ~$6 million

Question 5

The cofounders' experience and previous successes will influence an investor's willingness to invest in a company.

Accepted Answer

A) True 
 B)False

Question 6

The authors recommend finding investors early in the game so that you can focus on building the company.

Accepted Answer

A) True 
 B)False

Question 7

The average partner in a VC firm will do ______ deals per year.

Accepted Answer

A) 100 
B) roughly 50 
C) five to 10 
D) one to three 
A) 100 
B) roughly 50 
C) five to 10 
D) one to three

Question 8

As a business grows and starts to take in more revenue,entrepreneurs may seek investment through the mezzanine stage of financing.

Accepted Answer

A) True 
 B)False

Question 9

There is a reliable formula to determine how much equity you should keep and how much you should give away.

Accepted Answer

A) True 
 B)False

Question 10

A company's pre-money valuation is $500,000 and the post-money valuation is $600,000.How much did the angel invest?

Accepted Answer

A) $5,000 
B) $50,000 
C) $100,000 
D) It cannot be determined. 
A) $5,000 
B) $50,000 
C) $100,000 
D) It cannot be determined.

Angel investors are eligible to invest as long as they are accredited investors.

The term ______ refers to a rigorous process that evaluates an investment opportunity prior to a deal being finalized.

This action allows the stock to be purchased on the open market and gives investors a chance to get a return of cash.

If a VC offers you $2 million for a third of your company,what was your pre-money valuation?

The cofounders' experience and previous successes will influence an investor's willingness to invest in a company.

The authors recommend finding investors early in the game so that you can focus on building the company.

The average partner in a VC firm will do ______ deals per year.

As a business grows and starts to take in more revenue,entrepreneurs may seek investment through the mezzanine stage of financing.

There is a reliable formula to determine how much equity you should keep and how much you should give away.

A company's pre-money valuation is $500,000 and the post-money valuation is $600,000.How much did the angel invest?

Practicing Entrepreneurship

Activating an Entrepreneurial Mindset

Creating and Recognizing New Opportunities

Using Design Thinking

Building Business Models

Developing Your Customers

Testing and Experimenting With New Ideas

Developing Networks and Building Teams

Creating Revenue Models

Planning for Entrepreneurs

Anticipating Failure

Bootstrapping and Crowdfunding for Resources

Navigating Legal and Ip Issues

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Financial Statements and Projections for Startups

The Pitch Deck

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Exam 13: Financing for Startups

Angel investors are eligible to invest as long as they are accredited investors.

The term ______ refers to a rigorous process that evaluates an investment opportunity prior to a deal being finalized.

This action allows the stock to be purchased on the open market and gives investors a chance to get a return of cash.

If a VC offers you $2 million for a third of your company,what was your pre-money valuation?

The cofounders' experience and previous successes will influence an investor's willingness to invest in a company.

The authors recommend finding investors early in the game so that you can focus on building the company.

The average partner in a VC firm will do ______ deals per year.

As a business grows and starts to take in more revenue,entrepreneurs may seek investment through the mezzanine stage of financing.

There is a reliable formula to determine how much equity you should keep and how much you should give away.

A company's pre-money valuation is $500,000 and the post-money valuation is $600,000.How much did the angel invest?

Practicing Entrepreneurship

Activating an Entrepreneurial Mindset

Creating and Recognizing New Opportunities

Using Design Thinking

Building Business Models

Developing Your Customers

Testing and Experimenting With New Ideas

Developing Networks and Building Teams

Creating Revenue Models

Planning for Entrepreneurs

Anticipating Failure

Bootstrapping and Crowdfunding for Resources

Navigating Legal and Ip Issues

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Financial Statements and Projections for Startups

The Pitch Deck

Filters