Venture Capital Dilemma Quiz
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Questions and Answers

Rule of thumb - for every 10 investments: 3 are complete losses, 3 or 4 neither succeed nor fail, 2 or 3 return > or = 3x, 1 or 2 return > 10x. This highlights the potential ________ in venture capital investing.

reward

Errors of omission in VC refer to not ________ when one should, according to Kenney and Florida (2000).

investing

In the deal funnel of Silicon Valley VC, out of 3,000 'warm' introductions per year, AH invests in 15. 10 of those will ________.

fail

According to the New Yorker article on Marc Andreessen of Andreessen Horowitz, about 1 out of the 15 investments per year might join the 'unicorn' club, which is worth more than $1bn. This exemplifies the ________ of VC investments.

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

The process of VC involves evaluating management’s ability to exploit potential and control through the growth stages. This is crucial in determining if the financial return on investment meets the ________ criteria.

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

Deal funnels in VC show that while many start-up opportunities are introduced, only a few will ________ and join the 'unicorn' club.

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

Entrepreneurs and management teams need a ______, robust business model.

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

The business plan is used to formally assess market needs and ______.

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

The business plan is used to review the business' ______ and weaknesses.

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

The business plan is used to identify critical ______ factors (CSFs).

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

The business plan is used to explain the ______, tactics and actions to achieve profitable growth.

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

The business plan is not just prepared for the purpose of ______ finance.

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

VCs will ask about the ______ of the product.

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

VCs will enquire about the ______ of the intellectual property.

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

The plan should cover ______ to entry.

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

The plan should address likely ______ responses to your product.

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

VCs will ask what happens to the IP if the company becomes ______.

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

The plan should analyse the ______ of competitor products.

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

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