Business Plan Business Plan Presentation & Pitch 2

Question 1

What is the 'ask' in an investor pitch?

Accepted Answer

The specific amount of funding requested and how it will be used

Answer

The 'ask' is the specific amount of funding the company is requesting from investors, along with a clear description of how those funds will be deployed.

Question 2

What does 'pre-money valuation' mean in investor discussions?

Accepted Answer

The value of the company before new investment is added

Answer

Pre-money valuation is the agreed value of a company before new investment is added, used to determine investor equity stakes.

Question 3

What is an angel investor?

Accepted Answer

A high-net-worth individual who provides early-stage capital in exchange for equity

Answer

An angel investor is a high-net-worth individual who provides early-stage capital to startups in exchange for equity or convertible debt.

Question 4

What is a venture capitalist (VC)?

Accepted Answer

A professional investor who manages pooled funds to invest in high-growth startups for equity

Answer

A venture capitalist manages pooled investment funds and provides capital to high-growth startups in exchange for equity, expecting significant returns.

Question 5

What does 'equity dilution' mean for founders?

Accepted Answer

The decrease in a founder's ownership percentage when new shares are issued to investors

Answer

Equity dilution occurs when a company issues new shares to investors, reducing the ownership percentage of existing shareholders including founders.

Business Plan Practice Test

Business Plan Practice Test

Business Plan Business Plan Presentation & Pitch 2