Deck 19: Deal Presentations and Negotiations

Question 1

Laura begins talking to a venture capitalist and tells him of her 10-year background in insurance and the pain points she discovered while working there. This is an example of:

A) Bragging
B) Establishing credibility
C) Sales
D) Marketing

Answer 1

Establishing credibility

Question 2

What is the first part of a pitch?

A) Execution
B) Solution
C) Customer need
D) Market

Answer 2

Customer need

Question 3

________ is the basis of nearly every enduring relationship in business.

A) Profit
B) Trust
C) Compatibility
D) Need finding

Answer 3

Trust

Question 4

In the 10/20/30 rule, what does the 30 signify?

A) Size of text
B) Minutes presenting
C) Number of slides
D) Number of times to practice

Question 5

When pitching a company, it is more important to tell a compelling story than provide numerous graphs and data points.

Question 6

When fundraising for Intel, Gordon Moore and Robert Noyce had a long and arduous process to secure funding.

Question 7

Why is it easier for serial entrepreneurs to raise money?

A) Better understanding of the new business
B) Track record makes investors more willing to take risk
C) They can command higher valuations
D) Lower barrier to entry

Question 8

The business plan and ________ make up the core of a company "arch."

A) Revenue model
B) Story
C) Cash flow
D) Balance sheet

Question 9

What is the background research that investors do before investing in a company?

A) Research
B) Valuation
C) Due diligence
D) Ownership coverage

Question 10

Why would investors want to negotiate a lower valuation with the entrepreneur?

A) To save money
B) To get more equity
C) To keep the entrepreneur grounded
D) To protect the entrepreneur

Question 11

A wise or good agreement meets the legitimate interests of both parties.

Question 12

Which of the following is not a principle of negotiation?

A) Focus on the positions of the party, not the interests
B) Focus on describing the problem
C) Create a final deal based on fair standards
D) Generate a variety of options

Question 13

Entrepreneurs tend to have goals based on return on investment and time horizons for receiving this return.

Question 14

Which of the following is not a risk assessed by the investor?

A) Market
B) Technological
C) Psychological
D) Financial

Question 15

In ________ stage deals, it is more common to see warrants offered to tie ownership to performance.

A) Early
B) Late
C) Medium
D) Latest

Question 16

Investors will sometimes seek an anti-dilution clause to protect their ownership percentage.

Question 17

A term sheet is a binding funding offer.

Question 18

It is typical for founders to vest their stock over time.

Question 19

Which type of stock has claims on dividends before common stock?

A) Anti-dilution
B) Equity
C) Preferred
D) VC

Question 20

Circle is underpinned by this kind of technology, which signifies a decentralized public ledger.

A) Cryptocurrency
B) Bitcoin
C) Blockchain
D) Ethereum