Exam 13: Financing for Startups

Venture capitalists interview competitors as a way of assessing the competitive environment and verifying the entrepreneur's claims of competitive uniqueness.This would be considered what aspect of due diligence?

After friends and family, what percentage of equity is provided by Angel investors?

Describe what you should look for during your assessment of a venture capitalist.

What will be the first opportunity for the investor to sell stocks on the stock market?

Convertible debt can turn to ______ when money is received from a venture capitalist.

What is a market comparable?

During the due diligence process, many questions are asked that cannot be answered immediately.What ground rules might you establish to make sure that the parties remain ethical during the process?

One of the primary values of convertible debt is that it:

One of the primary values of convertible debt is that it is attractive to investors because:

In early-stage financing, small amounts are given so that entrepreneurs can prove a business concept

This angel group invests in women-led startups.

The cofounder of Contap, Jason Craparo, measures his company's success by ______ and ______.

______ angels can be former business executives who want to attain profit and play a large part in the company.

In relation to the industry, your company will be assessed for ______ fit.

What is a typical investment range for angel investors?

What type of investment vehicle do venture capitalists use?

An investor offers $150,000 for 30% of the company.What is the post-money valuation of the company?

What people might be interviewed in the course of due diligence?

How often will additional funding be awarded by a VC, assuming the company is growing?