FlexiQuiz - QAI - Module #4 Quiz

1. Crowd or Community Investors can be described as:

Individuals who invest in Reg CF offerings

Individuals who invest privately and directly into startups

Individuals who only invest in startups that have demonstrated high potentiality.

Individuals who invest in companies they work for

2. Venture Capitalists typically take what kind of role in the startups they invest in?

A passive role, rarely interacting with the management

No role, they just provide capital

A mentorship role, guiding from a distance

None of the answers are correct

A hands-on role, often involving board seats

3. What is the primary function of a "Special Purpose Vehicle" (SPV) in startup investments?

To facilitate high-level meetings between investors and startups

To allow investors to bypass regulatory restrictions

To limit the number of investors listed on the startup's capitalization table

To allow investors to directly own equity in a startup

To allow investors to bypass capital gains

4. What is the average investment range per deal for Professional Angel Investors?

$250 - $2,500

$250,000 - $2,5000,000

$50,000 - $500,000

$5,000 - $25,000

$20,000 - $30,000

5. What is the role of the syndicate lead(s) in an angel syndicate?

All answers are correct

To set up the SPV

To identify and vet potential investment opportunities, negotiate terms, and lead the due diligence process

To oversee investments on behalf of the Syndicate

To contribute funds like other members of the syndicate

6. Which stage of startup investment is characterized by the development of a minimal viable product (MVP) and conducting market research with funding usually in the range of $50,000 to $500,000?

Series A Stage

Seed Stage

Series C Stage

Pre-Seed Stage

Series B Stage

7. What is a notable characteristic of Professional Angel Investors?

None of the answers are correct

They invest as a hobby or a side activity

They usually take a hands-off approach in the startups they invest in.

They invest only through Regulation CF portals.

They are accredited, high-net-worth individuals who often provide mentorship to startups

8. During which startup investing stage do companies generally seek funding to accelerate growth and prepare for an Initial Public Offering (IPO) or acquisition, typically raising between $10 million and $100 million or more?

Pre-Seed Stage

Series B Stage

Series C Stage

Seed Stage

Series A Stage

9. What does the "power law" in startup investing usually refer to?

The principle that every startup investment will yield a positive return

The principle that 80% of the returns are generated by 20% of the investments

The principle that investing is only for wealthy individuals

The principle that investments should focus mainly on late-stage startups to minimize risk

The principle that suggests investing equally in all available startups

10. How many minimum investments in a startup portfolio are suggested by some experts, as mentioned in the passage?

11. What is the estimated time it might take to achieve a “liquidity event” when investing in startups?

5-7 years

Less than a year

10 - 15 years

Up to 10 years

2-3 years

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