Question: 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

  1. Explain differences between seed capital and start up capital per Hisrich. Is bank financing considered seed capital or start up capital?
  2. What is a venture capitalist and what is a primary goal of the venture capitalist?
  3. What are possible downsides of having a venture capitalist as an investor in the business?
  4. How is the primary goal of the venture capitalist achieved?
  5. Does the venture capitalist's criteria for success differ from the more traditional financing sources?
  6. What is an IPO?
  7. What drives the market for IPOs? Why is it so volatile?
  8. What are the main advantages and disadvantages of going public?
  9. Discuss the eight factors usually considered when valuing a venture.
  10. 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.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!