Which one of the following sources has been the largest supplier of venture capital over the past 25 or so years? * Individuals and families Endowments and foundations Finance and insurance companies pension funds
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- Give a report of any company (either local or international) that used venture capital as a source of financing.To get an overall picture of each companys capital structure, it is helpful to look at a chart that summarizes the companys capital structure over the past decade. To obtain this chart, choose a company to start with and select FINANCIALS. Next, select MORE THOMSON REPORTS CHARTSCAPITAL STRICTURE. This should generate a chart that plots the companys total long-term debt, total common equity, and total current liabilities over the past decade. What, if any, are the major trends that emerge when youre looking at these charts? Do these companies tend to have relatively high or relatively low levels of debt? Do these companies have significant levels of current liabilities? Have their capital structures changed over time?Shrewd Endeavors, Inc., invested $70,000 in a business venture with the following cash flow results: MARR is 10%. Determine the external rate of return and whether or not this is a desirable venture.
- Which of the following sources of entrepreneurial financing are available to ventures that have already started to conduct business and generate sales? bank financing venture capital public financing all of theseIdentify information used in an investment decision Look forward to the daywhen you will have accumulated $5,000, and assume that you have decided to investthat hard-earned money in the common stock of a publicly owned corporation. Whatdata about that company will you be most interested in, and how will you arrangethose data so they are most meaningful to you? What information about the company will you want on a weekly basis, on a quarterly basis, and on an annual basis?How will you decide whether to sell, hold, or buy some more of the firm’s stock?Briefly explain the following investment channels with each one’s own returns and Risks. Bank Deposits Insurance Certificates National Savings Certificates Private Company’s shares Precious metal investment
- A typical equity funding cycle for a start-up is Venture Capital, Private Equity, Angel Investment and IPO Angel Investment, Venture Capital, Private Equity and IPO Angel Investment, Venture Capital, Commercial Bank and IPO Financial Institutions, Venture Capital, IPO and Commercial BankAssume the following facts about a firm’s financing in the next year: Proportion of capital projects funded by debt = 45% Proportion of capital projects funded by equity = 55% Return received by bondholders = 8.0% Return received by stockholders = 14.0% The weighted cost of capital of this project is:What is the best explanation for the recent increase in assets held by mutual funds and other investment companies? Stock market increases Lower tax rate on mutual funds Increased flow of funds into employer-sponsored plans and IRAs Higher savings rate
- A high growth company raised $10,000,000.00 in capital from a venture capital firm in the early growth stage of funding.The pre-money valuation of the company at the time the capital was raised $20,000,000.00.The terms of the investment also had an annual dividend of 8% and an exit preference of 1.2X upon a liquidity event.Based on these facts please answer the following questions. After the closing of the capital funding what was the post money valuation and the venture capitalist’s percentage of ownership. Presuming the company sells for $100,000,000.00 what would the venture capitalist receive in proceeds? Presuming the company sells for $27,000,000.00 what would the owners (company) receive in proceeds. Presuming the company sells for $100,000,000.00 but also has $10,000,000.00 of debt on the balance sheet, what will the owners receive in proceeds? this is based on the facts provided. there is no more information to give.A high growth company raised $10,000,000.00 in capital from a venture capital firm in the early growth stage of funding. The pre-money valuation of the company at the time the capital was raised $20,000,000.00. The terms of the investment also had an annual dividend of 8% and an exit preference of 1.2X upon a liquidity event. Based on these facts please answer the following questions. After the closing of the capital funding what was the post money valuation and the venture capitalist’s percentage of ownership. Presuming the company sells for $100,000,000.00 what would the venture capitalist receive in proceeds? Presuming the company sells for $27,000,000.00 what would the owners (company) receive in proceeds. Presuming the company sells for $100,000,000.00 but also has $10,000,000.00 of debt on the balance sheet, what will the owners receive in proceeds?The startup management is looking to raise venture capital. The pre-money valuation is $10,000,000 with two co-founders holding 40% of the shares each and two investors holding 10% respectively. Now, the platform receives a venture capital injection of $10,000,000. Answer the following questions: i. What is the post-money valuation in $? ii. How much equity does each founder hold in % and $ after the capital injection? iii. How much equity does the venture capital firm hold in % and $ after the capital injection?
