Exam 13: Financing for Startups

Which of the following is a reason why analysts predict another rise in capital investments?

This practice allows larger companies to purchase smaller companies to increase profitability or eliminate competition.

One step in determining a startup company's potential is to ______.

Why would one consider waiting before seeking investment capital?

An angel investor is frequently a family member or close friend.

Which of the following is an important distinction between angels and VCs?

In 1979, the venture capital industry benefited from what action?

This angel group funds up to $1million per deal.

This action allows the stock to be purchased on the open market and gives investors a chance to get a return of cash.

Imagine that you are about to go on Shark Tank to obtain financial backing.Describe what factors you should consider when valuing your company.

Which of the following is another term for convertible debt?

______ is provided to help implement an entrepreneur's research and development.

In short, VCs look for ______, big markets, and innovative ideas.

Generally speaking, a corporate angel often seeks this within the venture:

______ is a rigorous process that evaluates an investment opportunity.

______ is the company's value before it receives outside investment.

Pre-money valuation is the post-money valuation minus the ______.

Equity financing defined as ______.

Imagine that you have a new, tested invention that will require a million dollars in order to produce enough of the product to return a profit.What considerations should you review before approaching a venture capitalist?

The following is used to test the product within the target market.