Intellectual Property Flashcards
Q: What are common sources of startup funding?
A: Sources include:
Personal Savings Angel Investors Venture Capital Bank Loans Crowdfunding
Q: Explain the role of angel investors.
A: Angel investors provide capital to startups in exchange for equity, often mentoring the entrepreneurs and offering industry connections.
Q: What is venture capital?
A: Venture capital is funding from investors to startups with high growth potential in exchange for equity stakes, typically through a formal fund.
Q: Discuss the advantages of crowdfunding.
A: Advantages include access to a large pool of investors, validation of ideas, and market exposure without giving away equity initially.
Q: What factors do investors consider when funding a startup?
A: Factors include the business model, market opportunity, team expertise, traction, and financial projections.