Exam 13: Financing for Startups

The degree to which the product or service meets a market need within the industry, thus how it adds value in the industry and promises growth, is referred to as which of the following?

This group is located in Arizona and has invested in more than 65 companies since 2000.

You and your cofounders have spent a year building and testing a home wireless system that is easy to install and will integrate media streaming from phones, television, and the Internet.You have tested the product on family and friends and built a prototype.You now need money to build a pilot test, creating 100 systems and placing them in a display at five selected stores.Identify the best source(s) of capital that you and your cofounders should seek (you will need $100,000).

An entrepreneur is asking for $1 million dollars for 30% of his company.What is the entrepreneur's post-money valuation?

Entrepreneurs must determine the firm's potential in the chosen ______.

______angels are entrepreneurs who have already started and successfully operated their own businesses.

______ angels, often independently wealthy, tend to invest for pleasure.

What signals the end of the due diligence period?

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?

When working with a venture capitalist, it is possible to be demoted within your own company.

How is a seed company valued?

How far back can we track the history of venture capital?

When valuation considers value add, what is being talked about?

A(n) ______ is an informal investor who provides an entrepreneur with funds even though they have no previous association with the entrepreneur.

______ angels are likely to intervene if the business is not going well.

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

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

Which of the following would be most likely to fund $600,000 or more in early to late stage companies?

What is the ultimate reason for trading equity for financial support?

When Google attained investors, what portion of the company did they retain?