VCPE_mini quiz

What is EBITDA

• E Before Investment, Taxes, Depreciation, and Amortization

• Earnings Before Interest, Taxes, Depreciation, and Amortization

• Profit after paying taxes and expenses

• Earnings Before Interest, Taxes, Depreciation, and Annual Expenses

Firm or startup's valuation should produce one final valuation figure

• True

• False

Should it be okay if valuation is based on assumptions related to the development of a unique and sustainable business model of a firm?

• No

• Yes

What is IRR?

• Investment rate of return

• Investment rate of revaluation

• Internal rate of return

• Internal rate of revaluation

As start-up companies are typically funded entirely by equity, the EV and the equity value of these companies are broadly the same.

• True

• False

• Inconclusive

• I donot know

Which of the following is not an element of a balance sheet?

• Current asset

• Equity

• Sale revenues

• Dividend

What is DCF in valuation ?

• Dividend cash flow

• Debt for continued flow

• Debitor-led cash flow

• Discounted cash flow

Valuations at a start-up often increase at a non-linear rate, meaning that founders and existing investors give up a proportionally smaller percentage of equity per dollar of new money raised in later rounds.

• False

• true

Relevant valuation method for mature-profitable companies is

• EBITDA multiple

• Market multiple

• Berkus method

• IRR method

Have you watched any startup-theme movie? If yes, type the title of the movie below