Question

7)If a venture does not have the potential to be scaled up and capture a significant share of a market then venture capital may not be an appropriate funding source. True or False?

8) Base your answers on data at Crunchbase.com. The pre-money value of Zoom before the series A funding round was $6 million.  True or False?

9)Successful venture capital investing depends on finding and financing companies that offer “big market” opportunities.  True or False?

10)The risk of overvaluing a venture in an early venture capital round is that future investors may be unwilling to buy additional shares at this high valuation and this could starve the company of essential capital.  True or False?

Answer 1

Answer:(7) False

Explanation:

Venture capital is a type of private value and a kind of financing that speculators give to new businesses and independent companies that are accepted to have long haul development potential. Venture capital by and large originates from wealthy speculators, speculation banks, and some other budgetary establishments. Be that as it may, it doesn't generally take a financial structure; it can likewise be given as specialized or administrative ability. Venture capital is regularly distributed to little organizations with extraordinary development potential, or to organizations that have developed rapidly and seem ready to keep on growing.

Answer:(8) False

Explanation:

Zoom is a product organization that offers a correspondences stage that interfaces individuals through video, voice, talk, and substance sharing. It has a simple, dependable cloud stage for video and sound conferencing, joint effort, visit, and online courses across cell phones, work areas, phones, and room frameworks. Zoom brings together cloud video conferencing, straightforward online gatherings, and gathering informing into one simple to-utilize stage. The organization's strategy to make a people-driven cloud administration that changes the ongoing joint effort experience and improves the quality and adequacy of correspondences.

Valuation at IPO - $9.2B

Cash Raised at IPO - $751M

Initial public offering Share Price - $36.00

Answer:(9) True

Explanation:

Venture capital firms fund-raise from singular financial specialists, known as restricted accomplices. Firms at that point utilize those assets for ordinarily high premium interests in new businesses. The expectation is that those organizations open up to the world or get obtained. If that occurs, an organization takes care of the firm for its venture and accumulated intrigue. At that point, the constrained accomplices recover their cash — in addition to premium and short the VC association's charge.

Answer:(10) False

Explanation:

The assets originate from a gathering of constrained accomplices (LPs) from whom the underlying asset was raised. What's more, the aggregate sum raised by a store regularly mentions to you what sort of venture stages they're keen on.

Be that as it may, a VC is more than a check — at any rate, a decent VC is. Venture capitalists are accomplices in your venture, and keeping in mind that they give you a check, the most worth they can bring to the table originates from their heading and industry information.

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