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WorksheetsY Combinator Guide to Seed Fundraising Quiz
Total questions: 14
Worksheet time: 7mins
What is the initial capital raised by a startup typically called?
Angel investment
Venture capital
Growth capital
Seed capital
When should founders ideally raise money?
When they have a strong team
When they have a fully developed product
When they have a large customer base
When they have a compelling story
What is a common dilution percentage founders should aim to avoid in a seed round?
25%
10%
20%
30%
What is the typical range for early fundraising rounds?
$100,000 to $500,000
$500,000 to $2 million
$2 million to $5 million
$5 million to $10 million
What does a convertible note convert into during an equity financing?
Options
Cash
Debt
Equity
What is a SAFE in the context of startup fundraising?
Standard Agreement for Fundraising Events
Simple Agreement for Financial Equity
Secure Agreement for Financial Equity
Simple Agreement for Future Equity
What is the primary difference between an angel investor and a venture capitalist?
VCs invest in later stages only
Angels are more experienced than VCs
Angels invest their own money, VCs invest others' money
Angels require more documentation
What is the purpose of crowdfunding platforms like Kickstarter?
To provide loans to startups
To launch products and find venture funding
To sell equity directly to the public
To replace traditional investors
What should founders focus on during investor meetings?
Presenting a detailed business plan
Getting the next meeting
Discussing financial projections
Closing the deal immediately
What is a common cost for an engineer in Silicon Valley per month?
$25,000
$15,000
$20,000
$10,000
What is the maximum effective valuation for an investor in a convertible note called?
Equity
Discount
Cap
Dilution
What is the typical pre-money valuation range for seed rounds?
$10 million to $20 million
$5 million to $15 million
$2 million to $10 million
$1 million to $5 million
What is the best approach when negotiating with investors?
Be aggressive in your demands
Negotiate in real-time
Get help from experienced advisors
Avoid discussing valuation
What is the primary goal of a founder during fundraising?
To secure long-term partnerships
To impress investors with a detailed plan
To raise money as quickly as possible
To achieve the highest valuation
