Raising Capital

What is the first round of funding called?

• Series A

• Series 1

• Venture Capital

• Seed Funding

Debt financing: (select all that apply)

• 1. is a loan

• 1. must be repaid

• 1. gives an investor equity in your company

• has no risk to the borrower

A disadvantage of self-funding is that a person runs the risk of high debt or bankruptcy.

• True

• False

Kickstarter, GoFundMe, and Indiegogo are examples of:

• Crowdfunding

• Incubators

• Accelerators

• VC firms

A(n) __________ is how you're going to get money out of your company.

• Incubator

• Exit Strategy

• Burn Rate

• Pivot

The valuation of the company will be the same regardless of the funding round.

• True

• False

Another term for self-funding or funding through family and friends is:

• Cowboy Booting

• Bootscooting

• Bootstrapping

• Shoelacing

One advantage of rewards-based crowdfunding is that you don't have to hand over equity in your company.

• True

• False

What is one advantage of receiving startup capital from family and friends?

• 1. They are likely to give you a large sum of money

• 1. You already have a trusting relationship with them

• 1. They'll never criticize your choices

• They fully understand your product and business plan

Most companies go through a Series D funding round.

• True

• False