Deck 10: Financing Entrepreneurial Ventures Worldwide

Question 1

Crowdsourcing refers to the entrepreneur funding their own project by using existing resources available to them coupled with careful management of current finances.

Answer 1

False

Question 2

In North America, the average amount required to start a business is between $100,000 and $200,000.

Answer 2

False

Question 3

An incubator attempts to improve a startups chance for success by providing office space, professional services, and business advice.

Answer 3

True

Question 4

In Canada, venture-capital-backed companies have generated nearly 150,000 jobs.

Question 5

The three fundamental elements of an entrepreneurial society are:

A) an abundance of existing entrepreneurs, plenty of market opportunities for new ventures, and sufficient resources for entrepreneurs to launch their new ventures.
B) an abundance of would-be entrepreneurs, plenty of market opportunities for existing ventures, and sufficient resources for entrepreneurs to launch their new ventures.
C) an abundance of would-be entrepreneurs, plenty of market opportunities for new ventures, and sufficient resources for entrepreneurs to continue their existing business.
D) an abundance of would-be entrepreneurs, plenty of market opportunities for new ventures, and sufficient resources for entrepreneurs to launch their new ventures.
E) an abundance of existing entrepreneurs, plenty of market opportunities for existing ventures, and sufficient resources for entrepreneurs to continue their existing ventures.

Question 6

All of the following were listed as new types of informal investing, expect for:

A) Microfinancing
B) Angel Investing
C) Crowdfunding
D) Bootstrapping
E) Equity Crowdfunding

Question 7

As of 2008, roughly how much was the cost of launching an Internet based startup?

A) $25,000
B) $50,000
C) $100,000
D) $500,000
E) $750,000

Question 8

What percent of the venture capital invested in Canada finances high-technology companies?

A) 80%
B) 33%
C) 49%
D) 15%
E) 92%

Question 9

From 1970 to 2012, how many companies did the venture capital industry invest in?

A) 1,000
B) 5,000
C) 11,000
D) 25,600
E) 41,000

Question 10

What is the Microcredit Summit Campaign, and how does it work?

Question 11

What were the two goals of the 2006 re-launch of the Microcredit Summit Campaign?

Question 12

How much startup capital does an entrepreneur need to start a business?

Question 13

Describe the model developed by Bygrave and Reynolds that predicts whether or not a person was an informal investor.

Question 14

Describe venture capital investing from the perspective of the firm's general partners.

Question 15

Explain why when the IPO market is booming, the returns on venture capital are high, and vice versa?

Question 16

Describe the IPO market in 2012.

Question 17

How did the instability of European stock markets affect the development of the venture capital industry on the continent?
One of the principal reasons for the failure of classic venture capital in Europe at the start of the 1990s was the failure of the secondary markets after the general stock market crash of October 1987.

Question 18

What is the relationship between the rate of taxation and informal investing?

Question 19

What is the relationship between the rate of taxation and Classic Venture Capital?

Question 20

What is the relationship between Total Entrepreneurial Activity and Informal Investing?

Question 21

What role does classic venture capital have in the way people work, live, and play? And why?

Question 22

What is the crucial role of self-financing and informal investing?

Question 23

Describe four new types of informal investing: