Which of the following are differences between the discounted cash flow and venture capital models of valuation?

• A.The venture capital model ignores ongoing cash flows until the exit point on the investment.
• B.The venture capital model requires the use of transaction-based benchmarks to determine value.
• C.Both a and b are true.
• D.Neither a nor b are true.

The key outcome at stake in the negotiation between a venture capitalist and an entrepreneur is:

• A.The percentage ownership share conveyed to the venture capitalist.
• B.The expected return on investment earned by the venture capitalist.
• C.Outcomes a and b are interconnected and therefore not mutually exclusive.
• D.There are other outcomes that are more important to both the investor and entrepreneur.

Which of the following are most important in the process of calculating a discounted net cash flow valuation?

• A.Assumptions about parameter estimates that drive the forecast of financial statements.
• B.The method of calculating the net cash flow used in the valuation.
• C.Both a and be are equally important.
• D.There are other factors that are more important.