Deck 11: Raising Money for Starting and Growing Businesses

Question 1

The example at the beginning of the chapter showcases how an entrepreneur bootstraps a startup by scraping together resources.

Answer 1

True

Question 2

The value of any startup is determined by the seller, not the buyer.

Answer 2

False

Question 3

Canada's National Angel Capital Organization was created to promote and assist in the creation of the Angel community across the country.

Answer 3

True

Question 4

In recent years, Canada's venture capital market has not experienced changes in the amount invested in innovative technology companies.

Question 5

Scalability is considered to be evidence of market demand, often shown through sales and signed contracts with clients.

Question 6

Market Traction refers to the company's potential to earn revenue faster than the growth of their related costs.

Question 7

BigBelly Solar received financing from which of the following:

A) Family
B) Angel investing
C) Personal savings
D) Private investors
E) All of the above

Question 8

Investors also can influence price of a startup based on what factors?

A) Prior investments made by the investor
B) The maturity of the fund
C) State of mind during the initial meeting
D) A and B
E) A,B and C

Question 9

Which of the following are examples of online crowdfunding platforms available in Canada?

A) Kickstarter.com
B) GoFundMe.com
C) Indigogo.com
D) KIVA.org
E) All of the above

Question 10

NACO is a non-profit organization that to promote that type of investment in Canada?

A) Venture capital
B) Crowdfunding
C) Angel investing
D) Bootstrapping
E) None of the above

Question 11

Discuss the most critical aspects of a 5 year pro-forma statement as it relates to risk and valuation

Question 12

How is buying and selling a startup similar to real estate?

Question 13

Describe the purpose of the CYBF and BDC in Canada.