Venture Capital Quizzes - E-PersonalFinance

Venture capital financings:

(a) Have spawned very successful companies, such as Google and Apple (b) Are financed by commercial banks (c) Typically take the form of owning common stock (d) Are made by venture capital funds who are structured as corporations

Venture capital firms typically earn 20%-30% of the profits generated from a venture capital fund, which is referred to as a:

(a) Capital gain interest (b) Carried interest (c) Management fee (d) GP interest

An important right that venture capitalists receive in connection with their investment is:

(a) Interest payments (b) Right to repayment of principal invested (c) Liquidation rights (d) Common stock

Pari passu financings:

(a) Rank equal to current financings (b) Are senior to current financings (c) Are subordinate to current financings

Participating preferred stock grants have more favorable terms to venture capitalists than normal preferred stock.

(a) True (b) False

The largest shareholder in the parent company of MySpace, before it was sold to Fox, was which venture capital firm?

(a) VantagePoint Venture Partners (b) Kleiner, Perkins, Caulfield & Byers (c) Sequoia Capital (d) Benchmark Capital

What clause gives a venture capitalist the right to require the company to repurchase their security on a given date?

(a) Anti-dilution protection (b) Redemption right (c) Co-sale right (d) Preferred dividends

Who was the main early venture capital backer in eBay?

(a) VantagePoint Venture Partners (b) Benchmark Capital (c) Accel Partners (d) Sequoia Capital

Name the two primary venture capital firms that invested in Google at an early stage:

(a) Draper Fisher and Accel Ventures (b) Kleiner Perkins and Benchmark Capital (c) Sequoia Capital and Kleiner Perkins (d) VantagePoint and Sequoia Capital

What type of clause do venture capitalists obtain if they want to ensure that major shareholders will vote their way on a sale of the company?

(a) Redemption clause (b) Co-sale rights (c) Drag along rights (d) Lock-up agreement

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