How Kickstarter Plans to Avoid an IPO

How Kickstarter Plans to Avoid an IPO

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses Kickstarter's unique approach to venture capital, focusing on its decision to remain private and pay dividends instead of reinvesting all profits. Unlike typical venture-backed startups, Kickstarter is profitable and sustainable, attracting investors who value the idea over maximizing returns. The video also explores the challenges of attracting talent without offering equity and the implications of limited investors and exit strategies for firms like Union Square Ventures.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is Kickstarter's approach to handling profits compared to typical venture-backed startups?

Kickstarter reinvests all profits into the business.

Kickstarter focuses on short-term profits.

Kickstarter pays small dividends and maintains profitability.

Kickstarter aims to go public soon.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do Kickstarter's investors feel about its strategy of not reinvesting all profits?

They are actively seeking to change the strategy.

They are perfectly comfortable with this approach.

They are indifferent to the strategy.

They are uncomfortable and prefer more reinvestment.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What challenge does Kickstarter face in attracting talent?

Offering high salaries without equity.

Providing equity as a recruiting tool.

Attracting talent without offering equity.

Competing with large corporations for talent.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential future requirement for Kickstarter regarding its investors?

To go public immediately.

To limit the number of investors.

To stop paying dividends.

To increase the number of investors.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What might make Kickstarter more attractive to future investors?

Its focus on short-term profits.

Its aggressive reinvestment strategy.

Its history of paying dividends.

Its plan to go public soon.