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Venture Capital > Orientaion-Capital-Lesson > Flashcards

Orientaion-Capital-Lesson Flashcards

1
Q

What plays a crucial role in supporting and funding innovative startups and high-growth potential projects?

A

Venture capital

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2
Q

What involves providing financial resources, expertise, and guidance to early-stage companies in exchange for equity?

A

Venture capital

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3
Q

What refers to a form of private equity investment?

A

Venture capital

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4
Q

What are the roles of Venture Capital?

A
  • fostering innovation, driving economic growth, and creating job opportunities.
  • funding for startups to develop and launch their products or services, scale their operations, and reach new market.
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5
Q

What is a form of investment that involves capital provided by investors to fund various stages of a company’s development?

A

Private Equity

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6
Q

What are the stages of a company’s development?

A
  • startup and early-stage funding
  • mature company buyouts
  • restructuring.
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7
Q

How do private equity firms typically raise funds?

A

They raise funds from institutional and individual investors, pooling these funds together to make investments in privately held companies.

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8
Q

What is the goal of private equity investments?

A

generate strong returns

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9
Q

What refers to the sequence of stages and activities involved in funding and nurturing early-stage companies with high growth potential?

A

The venture capital cycle

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10
Q

What do Venture capital (VC) firms provide to startups?

A

Venture capital (VC) firms play a central role in this cycle, providing funding, expertise, and guidance to startups.

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11
Q

What occurs in the Due Diligence stage?

A

In this stage, VC firms conduct thorough research and analysis to evaluate the startup’s business model, market potential, team, and financials.

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12
Q

How do VC firms identify potential investment opportunities?

A

VC firms identify potential investment opportunities through various channels such as networking events, referrals, pitch competitions, and industry research.

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13
Q

What happens if the startup passes due diligence?

A

The VC firm provides funding in exchange for equity ownership, usually through rounds of financing (e.g., seed, Series A, Series B).

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14
Q

What is Value Addition in the venture capital cycle?

A

VC firms actively contribute expertise, industry connections, and mentorship to help the startup scale and succeed.

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15
Q

What does the Exit stage involve?

A

This stage involves realizing returns on the investment.

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16
Q

What are common exit strategies?

A

Initial Public Offerings (IPOs) or acquisition by larger companies.

17
Q

Who are the founders seeking funding for their startups?

A

Entrepreneurs

18
Q

Who are the professionals managing VC funds and making investment decisions?

A

Venture Capitalists

19
Q

Who are the Limited Partners (LPs)?

A

Institutional and individual investors who provide capital to VC firms.

20
Q

Who are Angel Investors?

A

Individuals who invest their personal funds in startups at an early stage.

21
Q

Who are Advisors and Mentors?

A

Experienced professionals who offer guidance and support to startups.

22
Q

Who are Exit Partners?

A

Investment banks, underwriters, or acquirers involved in the exit process.

23
Q

What do VC investments carry?

A

VC investments carry high risks but offer the potential for substantial returns.

24
Q

What is essential to mitigate risks and ensure successful investments?

A

Due Diligence

25
Q

What involves balancing the interests of entrepreneurs, VCs, and other stakeholders throughout the cycle?

A

Alignment of Interests

26
Q

What does Exit Timing involve?

A

Timing exits strategically to maximize returns while considering market conditions.

27
Q

What does Portfolio Management involve?

A

Managing a diverse portfolio of startups to spread risk.

Venture Capital (3 decks)

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