Innovation and Entrepreneurship Flashcards

What is the difference between an angel investor and a venture capitalist?

Answer: Angel investors use their own money while VCs manage pooled funds

Angel investors are high-net-worth individuals investing personal funds, while VCs manage pooled institutional capital.

What does 'pivoting' mean in the startup world?

Answer: Changing the fundamental business strategy while retaining core learnings

A pivot is a structured course correction in business strategy, product, or target market while maintaining core assets and learnings.

What is a 'value proposition' in business?

Answer: The statement of what benefit a product/service provides and why customers should choose it

A value proposition clearly communicates the unique benefits a product delivers and why it is better than alternatives.

Which of these best describes 'design thinking'?

Answer: A human-centered approach to innovation that emphasizes empathy and iteration

Design thinking is an iterative, user-centered problem-solving process involving empathy, ideation, prototyping, and testing.

In entrepreneurship, what is an 'exit strategy'?

Answer: A founder's plan to sell or transfer ownership to realize value from the business

An exit strategy is how entrepreneurs and investors plan to liquidate their investment — common exits include IPOs, acquisitions, or MBOs.

What is 'blue ocean strategy'?

Answer: Creating uncontested market space where competition is irrelevant

Blue Ocean Strategy by Kim & Mauborgne advocates creating new demand in uncontested market space rather than competing in existing markets.