Venture Capital, Finance And Accounting

Question: What role do the investors play in a venture capital firm?
A
That of investment screeners

B
That of managing directors

C
That of advisors

D
That of due diligence experts

Note: Not available
1. Report
Question: What is the importance of the intellectual property (IP) which venture capitalists focus heavily on?
A
Companies with no IP will never succeed

B
Companies who have IP may be competing against firms with similar IP

C
Venture capitalists want to make sure the company is not at risk of being sued over the IP

D
IP can be a key deciding factor, as the target company's success or failure may hinge on the IP they own

Note: Not available
1. Report
Question: When was the largest burst of activity in the venture capital industry witnessed?
A
In the 1960s

B
In late 2000s

C
In mid 2000s

D
In early 2000s

Note: Not available
1. Report
Question: What does an exit effectively do?
A
It allows the investor to put more money into a company to get a better return.

B
It makes everyone involved rich.

C
It determines the value of the company at the given point.

D
It allows the venture capitalist to sell their equity in some fashion, either on the stock market, or to the owners, or to the new owners.

Note: Not available
1. Report
Question: What is meant by Post-money valuation?
A
It is the expected value of the company after it has received the venture capital investment.

B
It is the expected value of the company before it has received the venture capital investment.

C
It is the expected value of the company after five years.

D
it is the expected value of the company once the venture capitalist exits the company.

Note: Not available
1. Report
Question: When will the venture capitalist show the most active involvement with the company post funding?
A
At the beginning, offering direction and guidance

B
After a year, when the company begins to grow

C
Towards the exit point

D
Throughout the process

Note: Not available
1. Report
Question: What does "deal syndication" on the term sheet address?
A
It prevents outsiders from investing at all.

B
It discusses what happens in the event the company fails to execute.

C
It allows venture capitalists to merge two or more of their investments into one company.

D
It discusses the process required for additional investors to invest in the target company.

Note: Not available
1. Report
Question: What is the purpose of having portfolios?
A
To segregate investments into specific categories with similar criteria

B
To deal with tax implications

C
To rule out potential investments

D
To meet the requirements of the SEC

Note: Not available
1. Report
Question: What has been the largest area which venture capitalists have been actively investing in for the last decade?
A
Local government municipalities, such as utilities

B
Small businesses such as a brick and mortar store, or a coffee shop

C
Professional services industries, such as lawyers and accountants

D
Internet based companies, such as an e-commerce site

Note: Not available
1. Report
Question: What are the typical returns a venture capital firm expects when exiting from a successful investment?
A
At least 10 times their original investment

B
The market interest rate, compounded annually

C
Double their investment

D
Enough to break even and hold on to some equity

Note: Not available
1. Report

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Question: What role do the investors play in a venture capital firm?

Question: What is the importance of the intellectual property (IP) which venture capitalists focus heavily on?

Question: When was the largest burst of activity in the venture capital industry witnessed?

Question: What does an exit effectively do?

Question: What is meant by Post-money valuation?

Question: When will the venture capitalist show the most active involvement with the company post funding?

Question: What does "deal syndication" on the term sheet address?

Question: What is the purpose of having portfolios?

Question: What has been the largest area which venture capitalists have been actively investing in for the last decade?

Question: What are the typical returns a venture capital firm expects when exiting from a successful investment?