Question: 2. Describe the basic venture capital (VC) method for estimating a ventures value. 5. What is meant by pre-money valuation? What is post-money valuation? 6.

2. Describe the basic venture capital (VC) method for estimating a ventures value.

5. What is meant by pre-money valuation? What is post-money valuation?

6. What is staged financing? Describe how the capitalization (cap) rate is calculated.

10. What is the difference between the direct comparison method and the direct capitalization method?

12. Describe the following terms from the perspective of venture performance: (a) black hole, (b) living dead, and (c) venture utopia. In what sense is the typical business plan utopian?

13. What is meant by the utopia discount process? Describe how expected PV is calculated.

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