Financing and Funding for New Ventures
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Financing and Funding for New Ventures

This quiz covers the different alternatives and sources of financing for new ventures, including personal funds, equity capital, debt financing, and creative sources. It also discusses the importance of financing for most new ventures and the value of personal funds and sweat equity contributed by founders.

Created by
@SparklingConnotation

Questions and Answers

What is sweat equity in the context of a new venture?

The value of time and effort put into a new venture by the founder

What is the second source of funds for many new ventures, according to the text?

Friends and family

Which method is an example of bootstrapping for a new venture?

Buying used equipment instead of new

How do angel investors differ from venture capital firms in terms of investment timing?

<p>Angels invest earlier in the life of a company, while venture capitalists come in later</p> Signup and view all the answers

What is the main source of funds for venture capital firms?

<p>Wealthy individuals</p> Signup and view all the answers

Why do many entrepreneurs get discouraged when seeking venture capital funding?

<p>Because venture capitalists reject the majority of proposals</p> Signup and view all the answers

What is the annual funding amount provided by the SBIR Program to small businesses for early-stage and development projects?

<p>Over $1 billion</p> Signup and view all the answers

How many federal departments and agencies are required by the SBIR to reserve a portion of their R&D funds for awards to small businesses?

<p>11</p> Signup and view all the answers

What percentage of all Phase I proposals are historically funded in the SBIR Program?

<p>Less than 5%</p> Signup and view all the answers

What is the benefit of receiving a grant from the SBIR Program in terms of equity and intellectual property?

<p>The recipient retains the rights to any intellectual property</p> Signup and view all the answers

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