Quiz 1 - Introduction to Venture Capital

Name: (Last Name, First Name, Middle Initial)

Year and Section

• BSBA 3B
• BSBA 3E

What is the primary goal of venture capital (VC) investment?

• To provide loans with interest
• To acquire companies
• To invest in startups with high growth potential in exchange for equity
• To purchase real estate

Which stage of a company is typically associated with venture capital investment?

• Seed stage
• Late stage
• Mature stage
• Bankruptcy stage

What does 'equity' refer to in the context of venture capital?

• Ownership interest in a company
• A type of loan
• Collateral for a loan
• A government grant

Who are the primary contributors to a venture capital fund?

• Retail investors
• Government agencies
• High-net-worth individuals and institutional investors
• Banks

What is a 'Series A' round of funding?

• The initial funding from friends and family
• The first significant round of institutional investment
• Funding from government grants
• The stage of funding after an IPO

Which of the following is a common exit strategy for venture capital investors?

• Acquisition of the startup
• Bank loan refinancing
• Employee stock options
• Personal savings withdrawal

Which term describes the process of a startup selling shares to the public for the first time?

• Initial Public Offering (IPO)
• Series A Funding
• Angel Investment
• Acquisition

Which term describes the process of a startup selling shares to the public for the first time?

• Initial Public Offering (IPO)
• Series A Funding
• Angel Investment
• Acquisition