#1
What is the primary goal of venture capital?
Generate quick returns
Support and nurture startups
Provide low-risk investments
Fund established corporations
#2
What role do angel investors typically play in the startup ecosystem?
Provide early-stage funding
Lead IPOs
Manage day-to-day operations
Conduct market research
#3
In venture capital, what is a 'term sheet'?
Document outlining the terms of an investment
Financial statement
Employee handbook
Business plan
#4
What is the term for the rate of return that venture capitalists typically seek on their investments?
Interest rate
Coupon rate
Internal Rate of Return (IRR)
Inflation rate
#5
Which type of risk is associated with the day-to-day operations of a startup?
Market risk
Operational risk
Credit risk
Liquidity risk
#6
Which factor is most crucial for venture capitalists when evaluating potential investments?
Company size
Founder's personal background
Market potential
Number of employees
#7
Which stage of a company's development is typically targeted by early-stage venture capital?
Seed stage
Series A
Series B
IPO (Initial Public Offering)
#8
What is the term for the process where venture capitalists sell their ownership stake in a company?
Acquisition
Exit
Merger
IPO (Initial Public Offering)
#9
What is the typical duration of a venture capital fund's life cycle?
5 years
10 years
15 years
20 years
#10
In venture capital, what does the term 'due diligence' refer to?
Investigating a potential investment
The final stage of a startup's development
The process of obtaining a patent
Financial reporting
#11
What is the concept of 'vesting' in the context of venture capital?
The process of converting debt into equity
The gradual earning of ownership over time
The immediate transfer of ownership rights
The valuation of a startup
#12
Which of the following is a common type of venture capital investment?
Crypto trading
Real estate development
Equity financing
Government bonds
#13
Which type of risk is venture capital often associated with?
Market risk
Operational risk
Credit risk
Liquidity risk
#14
What is a 'unicorn' in the context of venture capital?
Mythical creature
Startup valued at over $1 billion
Type of investment fund
High-risk investment
#15
Which of the following is a common exit strategy for venture capitalists?
Liquidation
Recapitalization
Initial Coin Offering (ICO)
IPO (Initial Public Offering)
#16
What is the role of a 'lead investor' in a venture capital round?
Provides emotional support to founders
Negotiates terms on behalf of other investors
Handles marketing and promotion
Manages day-to-day operations of the startup
#17
Which financial instrument is commonly used in convertible notes, a type of startup financing?
Preferred stock
Common stock
Government bonds
Promissory note
#18
Which of the following is a common characteristic of venture capital investments?
Guaranteed returns
Low risk
High liquidity
Lack of control for investors