18 Questions
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.
potential
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.
investment
Deal funnels in VC show that while many start-up opportunities are introduced, only a few will ________ and join the 'unicorn' club.
prosper
Entrepreneurs and management teams need a ______, robust business model.
realistic
The business plan is used to formally assess market needs and ______.
competition
The business plan is used to review the business' ______ and weaknesses.
strengths
The business plan is used to identify critical ______ factors (CSFs).
success
The business plan is used to explain the ______, tactics and actions to achieve profitable growth.
strategy
The business plan is not just prepared for the purpose of ______ finance.
raising
VCs will ask about the ______ of the product.
USP
VCs will enquire about the ______ of the intellectual property.
ownership
The plan should cover ______ to entry.
barriers
The plan should address likely ______ responses to your product.
competitor
VCs will ask what happens to the IP if the company becomes ______.
insolvent
The plan should analyse the ______ of competitor products.
strengths
Test your knowledge on the venture capital dilemma, focusing on management's ability to exploit and control growth, potential for sustained growth, and the financial return on investment. Explore the errors of omission and commission in VC decision-making.
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