Exam 4: Getting Your E-Business Off the Ground

When seeking VC funding, an entrepreneur should:

Which of the following investor categories has been called the "lifeblood of U.S. entrepreneurship?"

A(n)_______________document is the basis for a verbal presentation to potential investors.

Commercial business incubators generally require hefty fees for business development services plus a large equity position in a startup business.

An angel investor is a wealthy individual who enjoys the excitement of investing in the early stages of a new business and is not averse to some risk.

When preparing for a meeting with potential investors, an entrepreneur can safely assume that audio visual equipment, laptop computers, copy machines, and other equipment will be available for his or her use at the meeting site.

An individual_______________typically invests a small amount in several new businesses that catch his or her interest.

Define and give a real-world example of business self-incubation.

The investor group that primarily invests in an entrepreneur's strengths rather than his or her new business idea is:

The first meeting with a potential_______________will be a brief sales meeting.

A(n)_______________will want to be actively involved in any strategic business decisions that could change a new business's direction or deplete its resources.

When a potential investor asks a question that cannot be immediately answered, an entrepreneur should just "wing it" by making up a plausible answer.

Many venture capitalist firms focus their investments on a portfolio of complementary businesses, each of which adds value to the overall portfolio.

A commercial business incubator is usually a cooperative venture between a university and local business community or government and focuses on stimulating and supporting growth in a local economy.

In addition to significant financing for a startup e-business, venture capitalist firms may also be able to offer an entrepreneur extensive knowledge about a specific industry and access to important contacts in that industry.

A professional investment firm that provides startup funds generally in exchange for a large equity position in a new business is a(n):

An entrepreneur should research the principal investors, investing history, investment strategies, and management team of a(n)_______________to make certain of a good fit with his or her business idea.

Two major sources of funding for startup e-businesses are informal investors and venture capitalists.

The downside to accepting startup funds from family and friends is the risk of jeopardizing personal relationships through business misunderstandings or a business failure.

_______________from a network of friends and family members is a great way to obtain enough money to get a new business started.