Question
In few sentences answer following questions - Question #1: Venture capital has many advantages. But there is a dark side for a founder to accept
In few sentences answer following questions -
Question #1:
Venture capital has many advantages. But there is a dark side for a founder to accept institutional capital from this source. In your opinion, what is the single greatest risk that presents itself after the ink is dry on a Series A capital raise. Be clear as to why.
Question #2:
As the general partner of a newly formed venture capital firm, you have just finished raising capital from LPs to launch your very first fund. You know you must seek a high ROI to compensate your investors for the high risk, but can you think of another reason for generating attractive returns to your LPs?
Question #3:
If you were a founder of a seed stage company, why might you prefer raising capital from a Tier 1 VC over that of a micro [or nano] VC? One powerful reason? What is the single greatest obstacle in raising capital from a Tier 1 VC?
Question #4:
If you were a potential angel investor of an early stage company, why might you prefer making an equity [common stock] investment over receiving a convertible note in exchange for money? One major reason? If you decided to take convertible note, what two terms would you insist upon and why?
Question #5:
Assume you were the founder of a medtech startup with mini-implants with new technology that means less pain and healing time, and will cost less than traditional dental implants. You are at least 2 years from commercialization. What two reasons would you give for raising corporate venture capital [CVC]?
Question #6:
Assuming you wish to raise corporate venture capital and the strategic investor with whom you have been in contact insists on a ROFR [Google the term], why might you decide to nix the deal?
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