Exam 16: Funding Startup and Growth

Venture capitalists (VCs) are fundamentally risk averse, so it is an entrepreneur's job to reduce risk in the three key areas where VCs typically find it: management risk, technology risk, and _____ risk.

_____ value refers to the amount that could be recovered by selling off all a company's assets.

Intrinsic value is the perceived value arrived at by interpreting balance sheet and income statements through the use of ratios, discounting cash flow projections, and calculating liquidated asset value.

Once chosen to guide a corporation through the initial public offering (IPO) process, an underwriter draws up a _____, which outlines the terms and conditions of the agreement between the underwriter and the entrepreneur/selling stockholder.

_____ is a particular type of receivable financing wherein the lender takes ownership of a receivable at a discount and then collects against it.

The time from idea generation through product development, market testing, and product launch is often referred to as the

A startup's predicted worth at the end of the valuation period is known as its

An antidilution provision ensures that the selling of stock at a later date will decrease the economic value of the venture capitalist's investment.

Briefly describe crowdfunding.

Private investors, who are called _____, are part of the informal risk-capital market, the largest pool of risk capital in the United States.

Which of the following is t he first step in the initial public offering  (IPO) process?

The most popular follow-up source of capital for new ventures is private investors, typically people you know or have met through business acquaintances.

The principal disadvantage of a public offering is that it provides the offering company with a tremendous source of interest-bearing capital for growth and expansion, paying off debt, or product development.

What is the difference between the National Association of Securities Dealers Automated Quotation (NASDAQ) and the New York Stock Exchange (NYSE) and American Stock Exchange (AMEX)?

After filing a registration statement, an advertisement called a "tombstone" announces a public offering in the financial press.

The term sheet is essentially a letter of intent, and it spells out the terms a venture capitalist is prepared to accept.

Briefly discuss due diligence as it pertains to the sequence of events in securing venture capital (VC) from a VC firm.

All of the following disadvantages are associated with being a public company EXCEPT

In the business model development and testing stage, an entrepreneur will likely require _____, an initial investment typically by the founders and other sources of "friendly money."

Social ventures, those that are structured with a focus on providing a benefit to society, are attractive to traditional types of investors because they typically produce a significant return on investment.