Entrepreneurial
Finance
1. Valuation: The value of a company.
2. What are the types of considerations in valuation.: Qualitative and Quantative
3. Industry dynamics, product/service organizational factors, manufacturing or processes and legal concerns are
typs of what?: Qualitative considerations.
4. Which considerations are first, qualatitative or quantative?: Qualitative.
5. Industry dynamics consists of what two things?: Industry growth phase and company posture.
6. What are the phases of industry growth?: Embryonic, Developmental, Expan- sion, Consolidation and Mature
7. Market size, regulatory climate, geographical constraints import/export dy- namics and cost structure are all
parts of what?: Industry dynamics
8. Patents are part of what?: Product/service related factors of qualitative consid- erations.
9. What is due diligence?: Just making sure you verify. Trust no ledger entry.
10.What are the three quantative methods?: Comparables, NPV or Discounted Cash Flows, and Venture Capital
Method
11.What does the comparables method do?: Looks at similar firms in a given industry.
12.Is it easy to get data on private firms?: No
13.Do market valuations always make sense?: No
14.If you compare a private to a public company, what should you do?: Dis- count the private firm 20-25%
15.What is free cash flow?: The $$$ left after funding growth opportunities.
16.What is the typical GDP of the US?: 2-3%
17.What is the typical rate of inflation in the US?: 2-3%
18.What growth rate should be used when doing NVP analysis of a new business?: 4-6%
19.Venture capitalists are typically what kind of organization?: Limited Part- nerships
20.VC is a category of what?: Private equity
21.VCs invest in what kinds of companies?: High-risk with high potential growth.
22.VCs invest how much per year in technology firms?: 30000
23.What is a leveraged byout.: Taking a public company private.
24.What was the NASDAQ at prior to the .com burst?: 5300
25.How many companies did the VCs invest in prior to the .com burst?: 6000
26.What is the average amount of VC investment per quarter?: 12B
27.How many companies are invested in per quarter by VCs?: 1200
28.Do VCs always invest in new companies?: No
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Finance
1. Valuation: The value of a company.
2. What are the types of considerations in valuation.: Qualitative and Quantative
3. Industry dynamics, product/service organizational factors, manufacturing or processes and legal concerns are
typs of what?: Qualitative considerations.
4. Which considerations are first, qualatitative or quantative?: Qualitative.
5. Industry dynamics consists of what two things?: Industry growth phase and company posture.
6. What are the phases of industry growth?: Embryonic, Developmental, Expan- sion, Consolidation and Mature
7. Market size, regulatory climate, geographical constraints import/export dy- namics and cost structure are all
parts of what?: Industry dynamics
8. Patents are part of what?: Product/service related factors of qualitative consid- erations.
9. What is due diligence?: Just making sure you verify. Trust no ledger entry.
10.What are the three quantative methods?: Comparables, NPV or Discounted Cash Flows, and Venture Capital
Method
11.What does the comparables method do?: Looks at similar firms in a given industry.
12.Is it easy to get data on private firms?: No
13.Do market valuations always make sense?: No
14.If you compare a private to a public company, what should you do?: Dis- count the private firm 20-25%
15.What is free cash flow?: The $$$ left after funding growth opportunities.
16.What is the typical GDP of the US?: 2-3%
17.What is the typical rate of inflation in the US?: 2-3%
18.What growth rate should be used when doing NVP analysis of a new business?: 4-6%
19.Venture capitalists are typically what kind of organization?: Limited Part- nerships
20.VC is a category of what?: Private equity
21.VCs invest in what kinds of companies?: High-risk with high potential growth.
22.VCs invest how much per year in technology firms?: 30000
23.What is a leveraged byout.: Taking a public company private.
24.What was the NASDAQ at prior to the .com burst?: 5300
25.How many companies did the VCs invest in prior to the .com burst?: 6000
26.What is the average amount of VC investment per quarter?: 12B
27.How many companies are invested in per quarter by VCs?: 1200
28.Do VCs always invest in new companies?: No
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