Howdo venture capital boards differ in composition from the


complete the following questions:-

1. Howdo venture capital boards differ in composition from the boards of companiesthat have been bought out?

2. Why would a board have special voting rights? How do these address some of thebasic tenets of private equity?

3. From the venture capitalist's viewpoint, whatare three reasons for staged financing?

4. Why is consensus building such an importantpart of a board member's work?

5. Why would limited partners countenance theirGPs putting more money into a struggling company? How does that differ from abank's response to a company's difficulties? How does that help explain thedifferences between the sorts of companies that take VC investment as opposedto those that take bank debt?

6. Exits are ultimately how private equity firmsrealize returns on their investments. Describe the various ways for a privateequity firm to exit an investment.

7. What are some of the key considerations indetermining whether to take a company public?

8. What are some of the characteristics of a private company that may increase thelikelihood of an IPO?

9. What are some of the characteristics of aprivate company that may prevent it from going public?

10. What are some of the key advantages of being a public company? What are the disadvantages?

11. Explain the phenomenon of underpricing as itrelates to IPOs.

12. Whatpurpose does corporate VC serve? What are the potential advantages?

13. What are some of the key issues withdistributing stock directly to LPs in conjunction with an IPO? What would LPsprefer.

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Business Management: Howdo venture capital boards differ in composition from the
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