vs chap2

Question 1

To achieve the fund-level target return, VC funds need a few investments to perform exceptionally well …

Answer 1

home runs

Question 2

This .. return profile underscores both the riskiness of VC investing

Answer 2

tail-heavy, feast-or-famine

Question 3

… is a demonstration to validate certain aspects of a concept or idea.

Answer 3

proof-of-concept (POC)

Question 4

… is funded by seed
investment

Answer 4

proof-of-concept (POC)

Question 5

high burn rate. phase= …

Answer 5

Commercialization

Question 6

funding raised from VCs . phase= …

Answer 6

Commercialization

Question 7

This stage is all about expansion and market penetration.

Answer 7

Scaling Up

Question 8

balance product-specific sales fluctuations. phase= …

Answer 8

Scaling Up

Question 9

Venture Capital Remains … Focused (country)

Answer 9

US

Question 10

… is an industry term for private companies

Answer 10

Unicorns

Question 11

Partners will also attend
the various demo days of accelerators or industry conferences to scout for potential
targets

Answer 11

Deal Sourcing

Question 12

investors employ
multiples of revenue and other key performance indicators to arrive at a … which also determines the equity split following an investment
round.

Answer 12

post-money valuation

Question 13

Many successful entrepreneurs join VC firms to become early stage investors themselves.

Answer 13

Hands-on Support

Question 14

are PE investments made by two or three PE funds

Answer 14

Club deals

Question 15

… 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.

Answer 15

Employee Stock Ownership Plan (ESOP)

Question 16

downround

Answer 16

a round of funding raised at a lower valuation than the previous
round

Question 17

A … provision provides
minority shareholders with the right to sell their shares in conjunction with the
majority shareholder in a third-party transaction

Answer 17

tag-along

Question 18

drag-along provision gives ..

Answer 18

the majority shareholder the right to force other shareholders to sell their shares
in a third-party transaction.

Question 19

VCs invest in every type of idea or company :
T or F

Answer 19

F