Venture Capital
What is the ultimate goal for businesses using VC funding?
What is the typical time period of return an angel investor looks for?
5 years
Roughly how many businesses do angel investors fund annually
about 67,000
How many investors did AirBNB acquire?
81
What threshold value defines a super angel?
$500,000
Reduces ownership
Many rules and regulations
36% unfamiliar with crowdfunding
Upfront costs on entrepreneur
No community built
Less brand awareness
No connections from VCs
Approximately how many companies are funded by VC's annually
1000
What are two factors companies should keep in mind when working with an angel investor?
Eager to fund in your location, Excited, Level of experience, Being lead investors
Follow up rounds, Track record of successful exits, Due diligence and proof of concept they require, Amount willing to invest
True or False: Crowdfunding gained traction as a legit funding source for companies, but has proven to be a fad as the usage of crowdfunding is on the decline
False. The crowdfunding market expected to grow by $200 billion by 2025
What is the return rate VCs need to break even?
Atleast 10x the initial investment
How much does an angel investor typically raise?
$150,000-$2,000,000
How can a company IPO as an equity crowdfund?
If, after a year, an investor no longer wanted to own shares in a company, they could sell them to an interested buyer
What are two pros of Venture Capital funding?
Able to raise large amounts of capital
Publicity and networking opportunities
Financial advice and management guidance
Assistance in raising funds in the future
What is the fundamental difference between VCs and angels?
An angel is a single investor/ a vc is a group of investors (company)
True/false: an IPO can enter an equity based crowdfunding platform?
Depends! They must be privately held to be fundable. However, they can invest in other companies on the platform