EGR395 Final Quiz Study

Venture Capital

Venture Capital

A form of private equity financing provided to startups and small businesses with perceived long-term growth potential.

De-Risking

Mitigating potential risks (technical, regulatory, market) through strategic planning and execution.

Operating Plan

A roadmap outlining critical milestones, resources, and strategies to achieve business objectives and reduce risks.

Value Inflection Milestones

Specific achievements that significantly increase the startup’s valuation, such as product launch or securing regulatory approval.

Cash Flow Statement

Tracks cash in and out of a business, emphasizing liquidity critical for startup operations.

Balance Sheet

A financial statement showing a company's assets, liabilities, and equity at a specific point in time.

Profit & Loss (P&L) Statement

Summarizes revenues, costs, and expenses over a specific time, aiding in business planning and valuation.

Intellectual Property (IP)

Legal protections like patents that safeguard a company’s innovations and ensure competitive advantages.

EBIT

Earnings Before Interest and Tax; a measure of a firm's profitability.

Market Validation

The process of obtaining feedback from potential customers about a product or service before launch.

Regulatory Approval

Certification from regulatory bodies confirming that a product meets defined standards.

Sales Partnerships

Agreements between two or more parties to collaborate on selling products or services.

Financial Metrics

Quantitative measures used to assess a company's financial performance.

Prototype

An early model or sample of a product, used to test a concept or process.

Market Share

The portion of a market controlled by a particular company or product.

M&A

Mergers and Acquisitions; the consolidation of companies through various types of financial transactions.

Scalability

The capability of a company to grow and manage increased demand without compromising performance.

Funding Stages

Different phases in which capital is raised, such as seed funding, Series A, etc.

Customer Feedback Loop

A feedback mechanism to gather insights from customers about a product to improve it.

Convertible Debt

A type of loan that can be converted into equity at a later date.

What is Venture Capital?

A form of private equity financing provided to startups and small businesses with perceived long-term growth potential.

What is De-Risking?

De-Risking is the process of mitigating potential risks (technical, regulatory, market) through strategic planning and execution.

What is a Cash Flow Statement?

A Cash Flow Statement tracks cash in and out of a business, emphasizing liquidity critical for startup operations.

What is Intellectual Property?

Intellectual Property (IP) refers to legal protections like patents that safeguard a company’s innovations and ensure competitive advantages.

What is Scalability?

Scalability is the capability of a company to grow and manage increased demand without compromising performance.

What is the purpose of a Profit & Loss (P&L) Statement?

The Profit & Loss (P&L) Statement summarizes revenues, costs, and expenses over a specific time, aiding in business planning and valuation.

What is Market Validation?

Market Validation is the process of obtaining feedback from potential customers about a product or service before launch.

What are Value Inflection Milestones?

Specific achievements that significantly increase the startup’s valuation, such as product launch or securing regulatory approval.

What is a balance sheet?

A Balance Sheet is a financial statement showing a company's assets, liabilities, and equity at a specific point in time.