What's CoCA?
Cost of Customer
Acquisition
Cost of Content Acquisition
Cash on Cash Accounting
Cost of Conversion and Attrition
Cola
What are the "Three F's" of early-stage financing?
Friends, Family,
and Fools
Forego Family Financing
Find Friends First
Fill, Finalize, and Forget
Sole proprietorships and LLC's are similar in that they:
can be set up without registration with the state
are both subject to liability
allow for
pass-through taxation
Which of the following involves the least outside capital coming into the company?
Private Equity
Venture Capital
Angel Investment
Bootstrap
Friends & Family
What does it mean to be oversubscribed?
More investors
want to invest than you have room for in your round
You've subscribed to too many business publications
like "Inc", "Fast Company", etc.
The number of orders for your product exceeds your
inventory on hand
What is the primary difference between angels and venture capitalists?
Angels only require a minority share, Venture
capitalists require majority ownership
Angels invest
their own funds, venture capitalists invest others funds
Angels generally make larger investments in
comparison to those made by venture capitalists
Angel typically require only informal agreements,
Venture capitalists require a legally binding agreement
What's the "DA" stand for in EBITDA?
Depreciation and
Amortization
Debt Amortization
Debt and Administration
True or False: In a limited partnership the day-to-day operations are controlled by general partners and funded by limited or silent partners who are legally responsible for losses based on the amount of their investment.
False
True
What is attrition?
An increase of employees in a start up company.
A reduction or
decrease in numbers, size, or strength of a start up company.
The percentage increase of investors between seed
funding and round B funding in a start up company.
Sequoia is a(n):
Social Network Application
Mobile Application
Angel Group
Venture
Capitalist group
Environmental Platform
Entrepreneurs who operate a self-financed startup without external fundraising are said to be?
Lucky
Bootstrapping
Cash flow positive
In the green
What is a Cap Table?
Similar to a periodic table but filled with
"Elements" associated with business
It's the place where paperwork is signed for deals
It's an ancient Mayan surface used in bloodletting
ceremonies for business owners that lost investors money
A breakdown of
who owns what in the business
What does the legal acronym DBA traditionally stand for?
Dun & Bradstreet Archive
Don't be afraid
Doing Business Association
Doing Business
As
What is one of the differences between a trademark and a patent?
Trademarks,
unlike patents, can be renewed forever as long as they are being used in
business.
There is no difference, they are essentially the
same.
A trademark can only be used for a digital product,
a patent is for a physical product.
What does "ramen profitable" mean for a startup?
Makes just
enough to pay the founders' living expenses
Consults on the side for money
Receives seed financing from investors
Has a big client or sale in the pipeline
If you get $10,000 for 10% of your company, your company valuation is...
100,000
1,000,000
20,000
10,000
50,000
What is a convertible note?
A debt financing
in which the debt converts to equity at a future equity financing
The loan on your new Audi 24 convertible
Options you provide to your employees that convert
into equity when they vest fully
What does IPO stand for?
Internet Public Offering
Initial Price Offer
Interest Price Outstanding
Interest Priced Optimization
Initial Public
Offering
What is Due Dilligence?
A formal estimate of the value of something on the
open market.
Process by which Angel Investors speak with company
founders to decide how much money they can make.
Process of
vetting a business's financial information, team, and other important
information that may influence the outcome of an investment.
A detailed method for managing a business.
In start ups, the term "M&A" refers to:
Mergers and
Acquisitions
Management and Attrition
Money and Acquisitions
Mergers and Attrition
What is the Valley of Death in regards to fundraising?
time between
first investment and first profits
time between idea conception and product launch
time before the first investment
time between first investment and exit
What is a split test?
Testing a variety
of single-variable samples against one another in order to improve response
rates
A "lean startup" concept that involves
installing a link to a new feature without actually building the feature, in
order to gauge user interest.
Which of the following isn't part of the traditional Marketing Mix?
Product
Promotion
Partners
Place
Price
An entrepreneur who continually comes up with new ideas and starts new companies is considered a:
Lifestyle entrepreneur
Serial
entrepreneur
Social entrepreneur
What is "sweat equity"?
A party's
contribution to a project in the form of effort - as opposed to financial
equity
The hardest working, yet smelliest person on staff
A term used to measure how hard someone worked to
raise funds
The opposite of "dry equity"
What's the classic 80/20 rule (the Pareto principle) with regards to marketing?
80% of your
profit comes from 20% of your customers.
80% percent of the market shares the same needs
20% of sales close
80% of your time makes up 20% of your profits.
What is a seed round?
First investment
round that 'seeds' the company's financials.
The kernal of an idea with which an entrepreneur
starts a company.
Like the Knights of the Round table, the
"round" of advisors who help an entrepreneur refine his/her business
model.
What does the term "priced round" mean?
An equity
financing in which the company and investors agree on a pre-money valuation
The exercise price on the options you've granted to
employees, advisors, etc.
When you take your team out for a round of drinks
What is an Incubator?
A short term financing option
Places senior executives in a failing start-up
Provides
workspace, coaching, and support to entrepreneurs & early-stage company's.
Helps increase a company's evalutation
What is a sole proprietorship?
A business funded by a sole investor.
A serial entrepreneur with a history of not working
with co-founders.
A business owned
and operated by one person.
A idea brainstormed by a single person.
What does CRM stand for?
Corporate Responsibility Management
Customer
Relationship Management
Corporate Representative Media
Customer Response Management
How many owners may an LLC have?
150
Unlimited
100
200
250
Which of the following is NOT a recognized entrepreneurial influencing skill?
Criticism and
punishment
Teamwork and people management
Leadership and vision
Helping and resolving conflict
What does it mean to "syndicate" an investment?
To have one company or group funding multiple
startups.
To have multiple investments from the same company
or group in the same startup (i.e. over multiple rounds).
To have one investment spread out over multiple
time periods (aka tranches).
To have multiple
companies or groups participate in a single investment round and share
diligence findings.
An Entrepreneur is a person who
Anyone who fills out a W-9
An individual who makes money on the internet
A person without a job
Takes a risk to
found a company in pursuit of profit
A manager in an s-corporation
Which company did Larry Page co-found?
LinkedIn Corporation
Microsoft Corporation
Facebook
Google, Inc.
Which type of venture exit typically has the largest payoff for founders and investors?
Secondary sale
IPO
Merger
Recapitalization
Acquisition
The idea "fail fast, fail often" refers to?
Lean startup
philosophy
Startup failure rate
Poorly designed products
Fundraising success rate
For a company that runs a free web app, which of these metrics would be described as a vanity metric?
Monthly active users
Daily active users
Total registered
users
Revenue
What is "deal fatigue"?
When the other party in a negotiation gives in to
your terms because they are exhausted
The burnout that occurs when you push your sales
people too hard
The negative
signaling effect of trying to raise money for a very long time.
How is the post-money valuation of a company determined?
Whatever you can negotatiate - push hard for the
highest possible post-money
It's a magical mix of how excited the investors
are, the perceived value of the work you have done so far, and the size of the
market
The net present value (NPV) of the forecasted
future cash flows for 10 years.
Pre-money
valuation plus the invested funds
What is a "discount rate" on a convertible note?
A risk premium
of additional equity for earlier investors.
A lowering of the amount of cash added by
investors.
A reduction in equity on conversion negotiated by
the entrepreneur.
What does "MVP" stand for in Lean Startup methodology?
Most Viable Product
Maximum Value Proposition
Minimum Viable
Product
Most Valuable Product
What is Guy Kawasaki's famous 10/20/30 rule?
10 slides, 20
minutes, 30 point font
Focus groups should have 10 people attending, ask
20 key questions, and take 30 minutes total
10 person team, 20 months, 30 million dollar exit
What is the maximum number of shareholders an S corporation may have?
75
50
25
100
150
The challenge of "crossing the chasm" refers to reaching which group of customers?
Early adopters
Late majority
Early majority
Innovators
What is another word/term for using feedback from users to improve your product/service?
Feedback Reporting
Entrepreneur's Golden Rule
Client Monitoring
Customer
Development
Lean Startup
According to Dave McClure of 500 Start-ups, what three people does every tech start-up need?
Investors, Founders, Employees
Hustlers,
Hackers, Designers
Leaders, Visionaries, Soldiers
What legal entity is the most Venture Capital friendly?
S-Corp
LLC
LLP
C-Corp
What type of branding is considered the default "brand architecture" and is used by most entrepreneurs?
Product branding
Hybrid branding
Corporate
branding
Co-branding
For high-growth ventures, which series of funding is typically used for sales acceleration and marketing over initial product development?
Seed funding
Series B funding
and beyond
Bridge funding
Series A funding
An investment "term sheet" establishes the basic terms and conditions of an investment and is:
Sometimes
legally binding but usually is not
Varies from state to state
Always a legally non-binding agreement
Always a legally binding agreement
Which of the following is NOT a benefit of registering a trademark?
Retain the moral
rights (control of modification)
Exclusive right to use the mark
Future right to make the mark
"incontestable"
Right to recover up to 3x damages from infringement
Presumption of being the valid owner
What's a "full ratchet"?
A deal term used by investors to force the sale of
the company
A deal term used by investors to accelerate option
vesting
A deal term used
by investors to prevent dilution
Developing a new idea by thinking without constraints is?
Brianwriting
Big-Dream Approach
Creativity
Golden Road
Brainstorming
What is the name for an initial time period during which employee stock options are not vested called?
flat
lead
cliff
freeze
deadzone
Which of the following is an online Q&A video platform available for Entrepreneurs?
Foundation
Grasshopper
Skype
Quora
