Exam 15: The Deal: Valuation, structure, and Negotiation

A cram down round is an investment round where follow-on investors are compelled by favorable conditions to accept a higher valuation than they would prefer.

Staged capital commitments favor the equity position of the

Explain how strategic circumference relates to fund raising.

A venture capitalist is investing $5 million to acquire 200,000 shares.What is the price per share?

Staged investments are a method used to manage risk.

Share price equals the price paid divided by the number of shares.

Name three factors that can affect the price of an investment deal.

How long is the typical expected holding period for a venture capital investment at the seed stage?

Investors do not discontinue funding to ventures that are economically viable.

Discuss some of the inherent conflicts that exist between users of capital (entrepreneurs)and suppliers of capital (investors).

_________ is a stock ownership mechanism that limits the number of shares employees are entitled to if they leave the venture prematurely.

The goals of users and suppliers of capital are often contradictory.

_______ are defined as economic agreements between at least two parties.

What are the three ingredients to an entrepreneurial valuation?

A venture investment round that is priced at less than the previous round is referred to as a ________ round.