ENTR 530 - Venture Capital

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1) In a two-page paper, answer the following questions at the end of Chapter 2 on page 52.

Questions 1, 5, 6, 7, 9, and 10

2) In a two-page paper, answer the following questions at the end of Chapter 3 on page 88.

Questions 1, 3, 5, 6, 8, 9, 12, and 13

(Note: For Question 13, confine your answer to venture capital).

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(1)

What are the major subcategories of private equity, and how do their investment approaches differ?

Why would a corporation, like Intel, want to invest in private equity?

Which type of LP might be inclined to increase its private equity investment allocation going forward? Why?

What is the primary role of a fund-of-funds, and what type of investor is likely to invest in one?

In the LPA, how are the interests of the LP and GP aligned?

10.

What is the purpose of a “concentration limit”?

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(2)

Why do investors prefer proprietary deals? Why would an entrepreneur or a seller prefer these deals?

What are the key points to include in a pitch to a potential investor?

What are the channels for an investor to seek out an investment opportunity?

How does an entrepreneur find an investor?

Why might an investor prefer a CEO who had failed in the past?

Why would a general partner want to do most of the reference checks himself?

12.

Why would an entrepreneur backed by a top-tier firm be more likely to start another venture?