Course Content

Funding: Assessment Questions

Course Overview

Needs and Markets

Intellectual Property

Regulatory and Reimbursement

Company Formation

• Funding

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Financials

Summary

Provide FEEDBACK

Answer the following questions regarding the important topics covered in this section of the CD. The correct answers can be accessed through the link at the bottom of the page.

1. What is a venture capitalist's primary concern when making decisions whether to fund a new startup?
   1. The innovativeness of the technology involved
   2. The team's dedication to the idea
   3. The company's ability to provide a significant return on their investment
   4. The quality of the clinical need
2. As a "rule of thumb" for deciding whether a concept is fundable by venture capitalists, it must have the potential to generate:
   1. More than $100-$500 million per year in gross revenue
   2. More than $10-$50 million per year in gross revenue
   3. More than $100-$500 million per year in net profit
   4. More than $10-$50 million per year in net profit
3. From the venture capitalist's perspective, a company should produce a return within how many years of their initial investment, approximately?
   1. more than 10 years
   2. 8 years
   3. 3 years
   4. 1 year
4. Which of the following is NOT a method by which venture capitalists might determine the value of a private company?
   1. The ratio of its market value to its annual sales should match an industry average
   2. Its current value should be 2-3 times smaller than its expected market value after completing its next milestone
   3. Its value should reflect what other knowledgeable investors are willing to pay
   4. Its value should be similar to the valuations earned by members of the company's management team in their prior successful ventures
5. In what areas can venture capitalists provide valuable assistance to the companies they fund?
   1. Through their prior experience in other companies with which they have been involved
   2. By providing seasoned members of the management team, if necessary
   3. By assisting with procurement of financing in subsequent funding cycles
   4. All of the above