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Explain differences between seed capital and start up capital per Hisrich. Is bank financing considered seed capital or start up capital? What is a venture
- Explain differences between seed capital and start up capital per Hisrich. Is bank financing considered seed capital or start up capital?
- What is a venture capitalist and what is a primary goal of the venture capitalist?
- What are possible downsides of having a venture capitalist as an investor in the business?
- How is the primary goal of the venture capitalist achieved?
- Does the venture capitalist's criteria for success differ from the more traditional financing sources?
- What is an IPO?
- What drives the market for IPOs? Why is it so volatile?
- What are the main advantages and disadvantages of going public?
- Discuss the eight factors usually considered when valuing a venture.
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A company needs $750,000. The company is expecting profits of $1,250,000. The venture capitalist wants an investment multiple of 4 times. The price-earnings multiple of a similar company is 15. Calculate using the "general valuation method" how much of a company a venture capitalist will want to own for a $750,00 investment.
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