Problem
A. How would a venture capitalist evaluate an investment? Use an illustration in your answer.
B. Identify and describe four of the most common criteria venture capitalists use to evaluate a proposal.
C. In a new-venture evaluation, what are the four stages through which a proposal typically goes? Describe each in detail.
D. An entrepreneur is in the process of contacting three different venture capitalists and asking each to evaluate her new business proposal. What questions should she be able to answer about each of the three?
E. An entrepreneur of a new venture has had no success in getting financing from formal venture capitalists. He now has decided to turn to the informal risk capital market. Who is in this market? How would you recommend the entrepreneur contact these individuals?