enfb 4190 exam 2 corman questions and
answers
what stage is the seed round funding in? - Correct Answers -feasibility study stage
what is the valuation of a company in series A funding round? - Correct Answers -
1,000,000- 10,000,000
what is the normal amount of raise that happens in seed round of funding - Correct
Answers -15k-500,000
the founder starts receiving a salary in the seed round. True or false - Correct Answers -
false
all the money goes into the business
angels always have to be - Correct Answers -accredited investors
why do angels want to invest their money? - Correct Answers -they want more money!!
what is the average age of an angel investor - Correct Answers -53
why do angel investors want to stay invested locally - Correct Answers -want to invest in
companies in their cities because it provides great economic growth
about how many angel networks nationwide - Correct Answers -450
having a minimum of 10 angels investments minimizes what and increases what? -
Correct Answers -minimizes risk and increases the chance you will "hit the homerun"
how many companies crash and burn - Correct Answers -4 out of 10
how many times will you break even in 10 investment - Correct Answers -3 out of 10
how many times will you make money in 10 investments - Correct Answers -3 out of 10
, what is it important for investors to remember what investing in companies? - Correct
Answers -every time an angel makes an investment, they need to see the potential of
getting a homer and be aware that is can also crash and burn
how long can you expect your money to be held up when you invest in an early stage
company - Correct Answers -5 years
what is series B funding used for? - Correct Answers -expansion capital
what group dominates series b funding - Correct Answers -venture capitalists
what is carried interest - Correct Answers -the 20% of profit that goes to the general
partner when working with venture capitalists
the term general partner refers to whom? - Correct Answers -the V.C. firm (runs it)
the term limited partners refers to whom? - Correct Answers -the investors
how much percentage does the general partner receive as a management fee of the
total committee capital per year? - Correct Answers -2%
funds with V.C. invest capital over how many year - Correct Answers -33.5 years
each fund takes on how many investments at once - Correct Answers -15 investments
what percent of entrepreneurs are out their company within 5 years after getting funding
from V.C.? - Correct Answers -80%
what is the average round of funding for V.C. - Correct Answers -$8-9 million
what are the steps of series A and B due diligence? - Correct Answers -investor pitch
due diligence request items
review term sheet
background check
face-to- face
sits visit
interview mngt team
interview customers
interview vendors
review I.P.
analyze proforma
review historical financial
sales an marketing plan review
sales pipeline
use of proceeds
answers
what stage is the seed round funding in? - Correct Answers -feasibility study stage
what is the valuation of a company in series A funding round? - Correct Answers -
1,000,000- 10,000,000
what is the normal amount of raise that happens in seed round of funding - Correct
Answers -15k-500,000
the founder starts receiving a salary in the seed round. True or false - Correct Answers -
false
all the money goes into the business
angels always have to be - Correct Answers -accredited investors
why do angels want to invest their money? - Correct Answers -they want more money!!
what is the average age of an angel investor - Correct Answers -53
why do angel investors want to stay invested locally - Correct Answers -want to invest in
companies in their cities because it provides great economic growth
about how many angel networks nationwide - Correct Answers -450
having a minimum of 10 angels investments minimizes what and increases what? -
Correct Answers -minimizes risk and increases the chance you will "hit the homerun"
how many companies crash and burn - Correct Answers -4 out of 10
how many times will you break even in 10 investment - Correct Answers -3 out of 10
how many times will you make money in 10 investments - Correct Answers -3 out of 10
, what is it important for investors to remember what investing in companies? - Correct
Answers -every time an angel makes an investment, they need to see the potential of
getting a homer and be aware that is can also crash and burn
how long can you expect your money to be held up when you invest in an early stage
company - Correct Answers -5 years
what is series B funding used for? - Correct Answers -expansion capital
what group dominates series b funding - Correct Answers -venture capitalists
what is carried interest - Correct Answers -the 20% of profit that goes to the general
partner when working with venture capitalists
the term general partner refers to whom? - Correct Answers -the V.C. firm (runs it)
the term limited partners refers to whom? - Correct Answers -the investors
how much percentage does the general partner receive as a management fee of the
total committee capital per year? - Correct Answers -2%
funds with V.C. invest capital over how many year - Correct Answers -33.5 years
each fund takes on how many investments at once - Correct Answers -15 investments
what percent of entrepreneurs are out their company within 5 years after getting funding
from V.C.? - Correct Answers -80%
what is the average round of funding for V.C. - Correct Answers -$8-9 million
what are the steps of series A and B due diligence? - Correct Answers -investor pitch
due diligence request items
review term sheet
background check
face-to- face
sits visit
interview mngt team
interview customers
interview vendors
review I.P.
analyze proforma
review historical financial
sales an marketing plan review
sales pipeline
use of proceeds
