Raising Money and Financials

Tyreek pitches four investors. They agree to each invest $25,000 and value Tyreek's company at $200,000. What percent of the company will Tyreek still own after the investment?

(a)  

The Small Business Administration guarantees some loans. The fee for this can range up to 3.75%. On a $1,000,000 business loan, how high could the fee be?

(a)  

You have savings of $157,000. After talking it over with your spouse, you agree to risk no more than 30% on your new business idea. How much do you have to invest in the business?

(a)  

You are asking investors for $100,000 each and promising to distribute to them profits of $15,000 each for the first 4 years and $25,000 each per year thereafter. Which of the following is closest to the number of years it will take for investors to get their money back?

• 8.0

• 1.6

• 5.6

• 3.0

If you sell stock in your company for $100,000 and the valuation of your company is $625,000, what PERCENTAGE of the company will you STILL OWN after the stock sale?

(a)  

If the average crowdfunding campaign investment is about 90% and the average number of investors is about 80, what is the best approximation of the average amount raised in a crowdfunding campaign?

(a)  

You have a loan for $200,000 at 8.5% annual simple interest. What is your MONTHLY interest payment?

• $1,239

• $1,508

• $1,311

• $1,417

If you raised $400,000 in a stock sale and gave up 12% of your company, what was the implied valuation of the company?

• 3,000,000

• $3,333,333

• $2,764,551

• $2,500,000

Venture capitalists often seek a return of 10 times their investment in 7 years. Approximately what is this compound annual rate of return? To make Z times return in Y years, where R is the compound rate of return: Z = (1 + R)^Y

• 65%

• 57%

• 39%

• 43%

Your business loan has a variable interest rate. Next month the annual rate will jump from 6.3% to 7.8%. Your balance is $1,620,000. How much will your MONTHLY payment go up?

• $1,750

• $2,740

• $3,025

• $2,025