Corporate Dividend Policy and Behaviour: the Malaysia Experience
Chapter 14 - Obtaining Venture and Growth CapitalChapter 14 - Obtaining Venture and Growth Capital
Student: ___________________________________________________________________________
1. One of the toughest trade-offs for any young company is to balance the need for startup and growth capital with preservation of equity.
True False 2. Bootstrapping an early stage company is a means of retaining equity.
True False 3. A central idea with obtaining risk capital is that a smaller percentage of a larger pie is preferred to a larger percentage of a smaller pie.
True False 4. In the majority of the high-technology startups and early-stage companies, debt is normally secured to fund research and development, prototype development and product marketing, launch, and cover early losses.
True False 5. An equity investment requires that the management team firmly believe that investors can and will add value to the venture.
True False 6. Angels or wealthy individuals are often sought because they are more easily sold than formal investors (i.e. venture capitalists and private placements).
True False 7. Informal investors prefer to invest in local ventures.
True False 8. The most effective means of reaching informal investors is to consult online directories that have been developed for that purpose.
True False 9. Gaining referrals can be a useful way of contacting informal investors.
True False 10. If an entrepreneur has obtained a referral, he or she needs to get permission to use the name of the person making a referral when the investor is contacted.
True False 11. Effective entrepreneurs set up meetings that allow them to present to more than one informal investor at the same time.
True False 12. Whether or not the outcome of a presentation is continued investment interest, the entrepreneur needs to try to obtain the names of other potential investors from this meeting.
Student: ___________________________________________________________________________
1. One of the toughest trade-offs for any young company is to balance the need for startup and growth capital with preservation of equity.
True False 2. Bootstrapping an early stage company is a means of retaining equity.
True False 3. A central idea with obtaining risk capital is that a smaller percentage of a larger pie is preferred to a larger percentage of a smaller pie.
True False 4. In the majority of the high-technology startups and early-stage companies, debt is normally secured to fund research and development, prototype development and product marketing, launch, and cover early losses.
True False 5. An equity investment requires that the management team firmly believe that investors can and will add value to the venture.
True False 6. Angels or wealthy individuals are often sought because they are more easily sold than formal investors (i.e. venture capitalists and private placements).
True False 7. Informal investors prefer to invest in local ventures.
True False 8. The most effective means of reaching informal investors is to consult online directories that have been developed for that purpose.
True False 9. Gaining referrals can be a useful way of contacting informal investors.
True False 10. If an entrepreneur has obtained a referral, he or she needs to get permission to use the name of the person making a referral when the investor is contacted.
True False 11. Effective entrepreneurs set up meetings that allow them to present to more than one informal investor at the same time.
True False 12. Whether or not the outcome of a presentation is continued investment interest, the entrepreneur needs to try to obtain the names of other potential investors from this meeting.