Fundraising for Startups

A type of funding in which you ask a big number of people to fund your idea and its usually done on an online Platform

• Bootstrapping

• Crowdfunding

• Microloans

• Business Loans

In Reward crowdfunding investors expect their money back with profits

• True

• False

In Debt crowdfunding investors expect their money back with profits

• True

• False

An angel investor net worth is usually $ ............ million in assets or more (excluding personal residences) 

Angel investors usually invest in round A in the fundraising

• Correct

• Incorrect

Answer explanation

Seed Stage

They typically raise money from other people, who are called limited partners (LPs)

• Angel investors

• Super angel investors

• Venture capitalists

They typically don’t ask for board seat or seek control of the company.

• Angel investors

• Family and friends

• Venture capitalists

These are companies that offer assistance to startup entrepreneurs such as office space, training, and management advice.

• Venture Capital

• Banks

• Charitable organizations

• Business Incubators

This is the first official equity funding stage. It typically represents the first official money that a business venture or enterprise raises.

• Pre- seed stage

• Seed stage

• Stage A

• Stage B

Which one is NOT a goal for Round A in fundraising

• Distribution

• Next level

• Shortfall

• Acquire other companies