Valuation and Fundraising Strategy Quiz

Talking to advisors and business contacts with valuation experience is not necessary in the fundraising process.

The Information Memorandum is a two-page taster document that summarizes the business plan as an investment opportunity.

Prioritizing the list of potential investors and conducting basic background research on each is not important in the fundraising process.

Introductions and referrals are not effective starting points when making initial contact with potential investors.

The Information Memorandum should be provided to potential investors only after the first phone call.

It is not necessary to profile the type of investor and their added value when preparing to secure early funding.

A single investment from one entity/person is the only option when raising funds; multiple investors are not considered.

The Term Sheet/MOU is the final formal legal document for investment.

The real value of the company is determined by its revenue at the pre-revenue stage.

At the pre-revenue stage, the target investment community is likely to include friends, family, and business angels.

The process of fundraising for a company at an early stage should be complex and difficult to understand.

The investor at an early stage will be looking for some or all of Stage 1 & 2 Deliverables.

The formal investment closed is usually led by the company's CEO.

The valuation of a company at an early stage should be unrealistic.

The funding process, whether a small or large amount, does not take time and is not a distraction for the promoter.

It is important to plan and execute the funding process efficiently to achieve the specific funding objective.

Having sufficient funds to deliver measurable progress normally includes securing Alpha & Beta first clients.

The next round of funding, sometimes called Series B, normally funds the scaling of the beachhead to break even or profitability.

The money from fundraising comes in large amounts without any delays.

Being involved with fundraising does not impact the capacity and emphasis on the core task of creating, validating, and leveraging advantage.

The hard bit is finding investors who are not serious enough to engage in the fundraising process.

The ISBN of the book mentioned is 978-0957627000.

'Advantage' covers the creation of effective Business Plans acquisition.