Question 1

______ consist(s)of small amounts of capital given to help prove a concept.

Accepted Answer

A) Direct cross-subsidies 
B) Seed-stage financing 
C) Startup financing 
D) Early-stage financing 
A) Direct cross-subsidies 
B) Seed-stage financing 
C) Startup financing 
D) Early-stage financing

Question 2

Because they are investors,angel investors and venture capitalists do not usually have an exit plan.

Accepted Answer

A) True 
 B)False

Question 3

Pre-money valuation is the post-money valuation minus the ______.

Accepted Answer

A) the value of the company at the end of 1 year 
B) the value of the company at the end of 5 years 
C) outside investment 
D) cost of the obtaining the investment 
A) the value of the company at the end of 1 year 
B) the value of the company at the end of 5 years 
C) outside investment 
D) cost of the obtaining the investment

Question 4

Assume that you are an entrepreneur faced with giving up 20% of your company in exchange for venture capital.What factors would you consider in accepting this offer?

Accepted Answer

Answers should focus on the pre- and pos

Question 5

By issuing convertible debt,the entrepreneur will become the minority stockholder and lenders will assume control over how the company is run.

Accepted Answer

A) True 
 B)False

Question 6

An entrepreneur has conducted crowdfunding to raise enough money for patents and building the founding team.He is now looking for funds to form a prototype and pitch the product to new investors.Which of the following is the most likely source of funds?

Accepted Answer

A) angel investor 
B) venture capitalist 
C) family and friends 
D) venture capitalist groups 
A) angel investor 
B) venture capitalist 
C) family and friends 
D) venture capitalist groups

Question 7

One of the main advantages of convertible debt is that it ______.

Accepted Answer

A) doesn't need money to be paid back 
B) removes the need for valuation 
C) is less expensive than other types of loans 
D) eliminates a need for venture capitalist funds 
A) doesn't need money to be paid back 
B) removes the need for valuation 
C) is less expensive than other types of loans 
D) eliminates a need for venture capitalist funds

Question 8

Describe what might occur during the legal aspect of due diligence,prior to the actual investment.

Accepted Answer

Answers should address a background chec

Question 9

IPOs,mergers and acquisitions,and buybacks are all types of ______ strategies.

Accepted Answer

A) investment 
B) exit 
C) growth 
D) retrenchment 
A) investment 
B) exit 
C) growth 
D) retrenchment

Question 10

Which of the following describes an angel group?

Accepted Answer

A) a group formed from entrepreneur and professional angels 
B) a group of investors who listen to your pitch as a group 
C) a group of angels who share knowledge and collaborate in their investments 
D) an angel who invests on behalf of others 
A) a group formed from entrepreneur and professional angels 
B) a group of investors who listen to your pitch as a group 
C) a group of angels who share knowledge and collaborate in their investments 
D) an angel who invests on behalf of others

Question 11

Seed-stage financing consists of small amounts of capital to help entrepreneurs prove a concept.

Accepted Answer

A) True 
 B)False

Question 12

Early-stage financing involves larger funds than seed-stage financing.

Accepted Answer

A) True 
 B)False

Question 13

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.

______ consist(s)of small amounts of capital given to help prove a concept.

Because they are investors,angel investors and venture capitalists do not usually have an exit plan.

Pre-money valuation is the post-money valuation minus the ______.

Assume that you are an entrepreneur faced with giving up 20% of your company in exchange for venture capital.What factors would you consider in accepting this offer?

By issuing convertible debt,the entrepreneur will become the minority stockholder and lenders will assume control over how the company is run.

An entrepreneur has conducted crowdfunding to raise enough money for patents and building the founding team.He is now looking for funds to form a prototype and pitch the product to new investors.Which of the following is the most likely source of funds?

One of the main advantages of convertible debt is that it ______.

Describe what might occur during the legal aspect of due diligence,prior to the actual investment.

IPOs,mergers and acquisitions,and buybacks are all types of ______ strategies.

Which of the following describes an angel group?

Seed-stage financing consists of small amounts of capital to help entrepreneurs prove a concept.

Early-stage financing involves larger funds than seed-stage financing.

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

Supplement A: Financial Statements and Projections for Startups

Developing Networks and Building Teams

Supplement B: the Pitch Deck

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

Filters

Exam 13: Financing for Startups

______ consist(s)of small amounts of capital given to help prove a concept.

Because they are investors,angel investors and venture capitalists do not usually have an exit plan.

Pre-money valuation is the post-money valuation minus the ______.

Assume that you are an entrepreneur faced with giving up 20% of your company in exchange for venture capital.What factors would you consider in accepting this offer?

By issuing convertible debt,the entrepreneur will become the minority stockholder and lenders will assume control over how the company is run.

An entrepreneur has conducted crowdfunding to raise enough money for patents and building the founding team.He is now looking for funds to form a prototype and pitch the product to new investors.Which of the following is the most likely source of funds?

One of the main advantages of convertible debt is that it ______.

Describe what might occur during the legal aspect of due diligence,prior to the actual investment.

IPOs,mergers and acquisitions,and buybacks are all types of ______ strategies.

Which of the following describes an angel group?

Seed-stage financing consists of small amounts of capital to help entrepreneurs prove a concept.

Early-stage financing involves larger funds than seed-stage financing.

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

Supplement A: Financial Statements and Projections for Startups

Developing Networks and Building Teams

Supplement B: the Pitch Deck

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

Filters