CH8TF

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Frugality is deemed a bootstrapping technique.

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The most common sources of debt financing are commercial banks.

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Venture capitalists need only basic summary information before they make funding decisions.

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Venture capitalists, surprisingly, require little information before they make an investment.

f

A potential danger of social lending is the implication that social loans may be viewed as gifts and taxed accordingly.

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History and nature of the company, capital structure, and description of any material contracts are just a few examples of the specific detailed information that must be presented about a firm that is going public.

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Informal risk capitalists are often referred to as "business angels."

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Social lending sites are different from so-called microlending sites.

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Venture capitalists are a valuable source of equity funding for new ventures.

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Informal risk capitalists are those who have already made their money and now seek to help new ventures.

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One of the most frequently used criterion in evaluating new ventures, is the ability of the entrepreneur to sustain intense effort.

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Private placement is a method of raising capital through the private placement of securities.

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Sophisticated investors are wealthy individuals who invest more or less regularly in new and/or early- and late-stage ventures.

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Sources of debt financing include trade credit, accounts receivables, factoring, and finance companies.

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Venture capitalists are slow to invest.

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Because the advantages of going public outweigh the disadvantages, it is in a corporation's best interest to go public.

f

Entrepreneurs are rarely able to set up a business without investment funds or bank loans.

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Equity financing is money invested in the venture with legal obligations to repay the principal amount of interest or interest rate on it.

f

Most venture capital funds later stages of venture development, not the start-up (or seed) stage.

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Public offering is a term used to refer to corporations taking public donations to raise capital.

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The average size of a social loan is around $7,000.

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The business plan is a critical element in a new-venture proposal.

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Use of debt to finance a new venture involves a payback of funds plus an interest fee for the use of the money.

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There is no way for the venture capitalist adequately to evaluate a new venture.

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There is only a small number of informal risk capitalists in the market today.

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Venture capital firms want to own control of the firms in which they invest.

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Venture capitalists are usually satisfied with a reasonable return on investments.

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Regulation D augments the regulations for reports and statements required for selling stock to private parties, friends, employees, customers, relatives, local professionals.

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The venture capital pool is rapidly declining due to over funding .

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Venture capitalists are quick to invest.

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