vs chap2 Flashcards
To achieve the fund-level target return, VC funds need a few investments to perform exceptionally well …
home runs
This .. return profile underscores both the riskiness of VC investing
tail-heavy, feast-or-famine
… is a demonstration to validate certain aspects of a concept or idea.
proof-of-concept (POC)
… is funded by seed
investment
proof-of-concept (POC)
high burn rate. phase= …
Commercialization
funding raised from VCs . phase= …
Commercialization
This stage is all about expansion and market penetration.
Scaling Up
balance product-specific sales fluctuations. phase= …
Scaling Up
Venture Capital Remains … Focused (country)
US
… is an industry term for private companies
Unicorns
Partners will also attend
the various demo days of accelerators or industry conferences to scout for potential
targets
Deal Sourcing
investors employ
multiples of revenue and other key performance indicators to arrive at a … which also determines the equity split following an investment
round.
post-money valuation
Many successful entrepreneurs join VC firms to become early stage investors themselves.
Hands-on Support
are PE investments made by two or three PE funds
Club deals
… sets aside a percentage
of shares in the start-up that can be granted to non-founding employees in the
form of stock options to attract, reward and retain first-rate talent.
Employee Stock Ownership Plan (ESOP)
downround
a round of funding raised at a lower valuation than the previous
round
A … provision provides
minority shareholders with the right to sell their shares in conjunction with the
majority shareholder in a third-party transaction
tag-along
drag-along provision gives ..
the majority shareholder the right to force other shareholders to sell their shares
in a third-party transaction.
VCs invest in every type of idea or company :
T or F
F
