RS_Finance_2023

Assume, you own a tech startup, you have an MVP (minimum valuable product) and some expectations of a future growth. If you want to attract financing, which type of investor will you choose?

• Turnaround fund

• Venture capital fund

• Industry-specific holding

• Activist

You buy shares in big corporations, gradually increase your share and try to enter the board of directors to participate in strategic decision making. With a high probability you are a/an:

• Business-angel

• Activist

• Owner of a search fund

You have billions on your bank account and keen on helping young start-uppers, which face problems on their way. You invest your own money and your key purpose is not the return, but the help. With a high probability you are a/an:

• Business-angel

• Activist

• Owner of a search fund

The firm is facing losses because of operating inefficiency. With a high probability such a firm will be an interesting target for:

• Turnaround fund

• Venture capital fund

• Industry-specific holding

• Private equity buyout fund

True or False?

VCs prefer startups with very high margins because VCs make their money by sharing in the startup's profits.

• True

• False

What does a venture capitalist gain in return for his venture capital?

• A share in the business

• Personal satisfaction

• A good name

• The company is named after him

The engagement letter is based on the:

• financial audit

• fairness opinion

• due diligence

• revenue stream and customers

If the buyer requests access to accounting books and data room of the seller, it would be for:

• due diligence

• estimating the timeline of the payment

• valuation

• checking the bid price or offer price