Economics
This field of economics focusses on single factors and the effects of individual decisions.
What is micro-economics?
The three components of these are the income statement, the balance sheet, and the cash flow statement.
What are financial statements?
These individuals are the main source of capital for seed stage investments.
What are angels? OR What are high-net-worth individuals?
This is the capacity and willingness to develop and manage a business venture in order to make a profit.
What is "Entrepreneurism"?
He wrote the book "Competitive Advantage".
Who is Michael Porter?
He coined the phrase, "The Invisible Hand of the Economy"
Who is Adam Smith?
This is normally the senior-most financial position in a company.
Who is the CFO?
This is a list of items that outline an investment deal.
What is a term sheet?
This term means that founders have funded their own company. It is also a statistical technique used in data with insufficient sample size whereby random sampling with replacement is used to allow for estimation of the sampling distribution.
What is "boot-strapping"?
These items should always be considered when developing a business strategy: threat of new entrants, threat of substitute products or services, bargaining power of suppliers, bargaining power of buyers, and the rivalry among existing firms.
What are the "five forces"
These two things are often seen as the main drivers of a the price and quantity of products sold.
What is supply and demand?
This is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.
What is the WACC? OR What is the weighted average cost of capital?
This is the slang term for the enterprise value of a venture-backed startup the day after a financing.
What is the "post-money"?
What is a "cap table"? OR What is a "capitalization table"?
This is the summation to tactics.
What is "strategy"?
Einstein said that this economic concept was the greatest invention of mankind.
What is compound interest?
This is the theoretical rate of return of an investment with no risk.
What is the risk free rate?
The is an investment term that gives the investor a right (but not the requirement) to invest in future financings of a company.
What is a "pro-rata right"?
This is a person that makes a career out of founding and managing startup companies.
What is a "Serial Entrepreneur?"
Bargaining power of suppliers and bargaining power of customers are areas that drive business strategy that can usually be controlled somewhat by the firm.
What is "vertical" competition?
She is the famous co-author of Free to Choose and the wife of the 1976 Noble Prize winner is Economics.
Who is Rose Friedman?
This U Chicago alum developed a model that determine the price for a call or a put option based on six variables including volatility, underlying stock price, exercise price, and the risk-free rate.
Who is Fischer Black?
He is the former Quartermaster General of the US Army during WW2 and is generally known as the "Father of Venture Capitalism".
Who is Georges Doriot?
This is the resulting curve of plotting the ending balance of the cash flow statement per period (without investment) against time for an entrepreneurial company.
What is the "J-Curve"?
The threat of substitute products, the threat of established rivals, and the threat of new entrants are three external areas of business strategy that are very difficult for firm to directly control.
What is "horizontal" competition?