fin 3360 ch 12

Annual VC investments reached an all-time high in the year 1990. t/f

false

Family offices are the largest supplier of venture capital. t/f

false

Individuals and families are more important suppliers of venture capital relative to finance and insurance firms. t/f

false

Initially, Small Business Investment Companies' access to borrowed funds appeared attractive. This was because venture investing and debt service commitments are an ideal mixture of financing for startups. t/f

false

The term "capital call" refers to the flow of business plans and term sheets involved in the venture capital investing process. t/f

false

When the venture fund calls upon the investors to deliver their investment funds, it reflects the deal flow. t/f

false

In a venture capital fund placement memorandum, which of the following is not part of the fund overview?

general partners' capital contributions

The beginning of professional venture capitalists is considered to have occurred:

in 1946

In a venture capital fund placement memorandum, which of the following is not a front-matter declaration?

targeted fund size

A term sheet is a summary of the investment terms and conditions accompanying an investment by venture capitalists. t/f

true

Created by the Small Business Administration, Small Business Investment Companies possess important tax advantages and are eligible to borrow amounts up to four times their equity base from the government. t/f

true

Endowments and foundations are more important suppliers of venture capital relative to individuals and families. t/f

true

Most venture investing came from wealthy individuals and families prior to World War II. t/f

true

Public pension funds supply about 20 percent of venture capital funds. t/f

true

When screening possible investments, a venture capital firm might issue a SLOR, which stands for:

"standard letter of rejection"