The Executive Summary does what two things?

The Executive Summary does what two things?

1. Summarizes goals and objectives for the business
2. emphasizes your commitment to the success of the business.

_____ are laws governing a private offering.

_____ are laws governing a private offering.

Answer: Regulation D

____ is a formalized method for obtaining funds from private investors.

____ is a formalized method for obtaining funds from private investors.

Answer: private offering

_____ provides grants from the U.S. government to small technology based businesses.

_____ provides grants from the U.S. government to small technology based businesses.

Answer: SBIR grants program

_____ is the overall coordinating party in a partnership agreement.

_____ is the overall coordinating party in a partnership agreement.

Answer: general partner

_____ is a party in a partnership agreement that usually supplies money and has a few responsibilities.

_____ is a party in a partnership agreement that usually supplies money and has a few responsibilities.

Answer: limited partner

______ is money given to a firm for developing a technology that involves a tax shelter.

______ is money given to a firm for developing a technology that involves a tax shelter.

Answer: research and development limited partnerships

______ is the standard way banks lend money to companies.

______ is the standard way banks lend money to companies.

Answer: conventional bank loan

_____ is tangible collateral valued at more than the amount of money borrowed.

_____ is tangible collateral valued at more than the amount of money borrowed.

Answer: asset base for loans

_____ is obtaining funds for the company in exchange for ownership.

_____ is obtaining funds for the company in exchange for ownership.

Answer: equity financing

___ is obtaining borrowed funds for the company.

___ is obtaining borrowed funds for the company.

Answer: debt financing

List 10 Entrepreneurial Death Traps ?

List 10 Entrepreneurial Death Traps ?

1. The 50-50 Partnership.
2. The Three Musketeers Trap.
3. Single Customer Over-reliance.
4. Mousetrap Teams.
5. Pricing Strategy.
6. Insufficient Capitalization.
7. The Industry Norm Conundrum.
8. Never Ready Product Trap
9. Market Research Lite.
10. Market Segmentation Lite.

Primary responsibilities of board of directors ?

Primary responsibilities of board of directors ?

1. Reviewing and setting corporate strategy
2. Providing an outside viewpoint / oversight
3. Appointing senior management
4. Approving key personnel policies, including compensation
5. Approving changes to the articles of incorporation or bylaws
6. Approving IPO, merger, acquisition, dissolution or other liquidity options
7. Approving material transactions involving the assets of the company; new rounds of financing
8. Calling special meetings of the shareholders

Primary difference between angel investors and VC firms ?

Primary difference between angel investors and VC firms ?

Angels do not have to invest in anyone.

Factors that make business less likely to receive angel investments ?

Factors that make business less likely to receive angel investments ?

o Poor assessment of entrepreneur or management team
o No continuing competitive advantage
o Limited markets

Factors that make business more likely to receive angel investments ?

Factors that make business more likely to receive angel investments ?

o Unique competitive advantage
o Capture large new primary market
o Successful management team
o Reasonable valuation

Why companies Fail VC process ?

Why companies Fail VC process ?

1. Management team deficiency
2. Lack of "fit"
3. Unrealistic expectations/demands
4. Too complicated
5. Management fails to display "expertise"
6. Due diligence failure
7. "This is a product, not a company!"

How so VC firms deal with SUMI issues?

How so VC firms deal with SUMI issues?

1. Formal due diligence process
2. Staged financing
3. Syndication
4. Compensation Contracts
5. Covenants and Restrictions
6. Composition of Board of Directors

What problems cause the need for venture capital?

What problems cause the need for venture capital?

• Soft Assets
• Uncertainty about the future
• Market conditions
• Information gap

What are some reasons to decline investment? (11 Reasons)

What are some reasons to decline investment? (11 Reasons)

-Lack of an experienced team
-Didn't fit criteria
-No competitive advantage
-No clear strategy
-Company too small
-Company too early stage
-No barriers to entry
-Risk to return too high
-Low margins
-Valuation too high
-Company not profitable