New Venture Financing Considerations Quiz
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Questions and Answers

During which stage of startup growth does the venture generate no revenues and have negative net income and cash flow?

  • Series A
  • Seed
  • Pre-seed (correct)
  • Mezzanine
  • In which stage of startup funding is external financing typically required?

  • Exit (M&A, LBO)
  • Series B (correct)
  • Series A
  • Seed
  • At which stage of startup growth does the rate of growth decline to the point where cash flow available to investors is positive?

  • Series A
  • Seed
  • Mezzanine
  • Series C & beyond (correct)
  • When does the start-up begin acquiring facilities, equipment, and employees required to produce the product?

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

    At which stage of startup funding does the exit typically occur through M&A or IPO?

    <p>(M&amp;A, LBO)</p> Signup and view all the answers

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