Final Quiz – Venture Capital Mastery | Guru Startups VC Course 2025

1. VC funds typically last:

3 years10 years20 yearsIndefinite

2. Carried interest motivates:

LPsGPs to maximize returnsFoundersAnalysts

3. Cap table shows:

Company valuation onlyEquity ownership breakdownRevenue dataCustomer churn

4. ESG stands for:

Equity Stock GainsEnvironmental, Social, GovernanceEnterprise Growth StrategyEconomic Stability Goals

5. IPO stands for:

Internal Public OfferingInitial Public OfferingInternational Private OfferingInstitutional Portfolio Option

6. The typical management fee in VC funds is:

0.5%2%5%10%

7. Limited Partners provide:

Capital to VC fundsOperational supportProduct developmentLegal filings

8. General Partners are responsible for:

Fund management and investmentsMarketing onlyAuditing LPsIPO regulations

9. A power-law return curve shows:

Few startups drive most returnsEqual returns across startupsLinear outcomesConsistent IRR

10. The J-curve effect in VC means:

Early negative returns before later profitsConstant growthImmediate profitsLinear risk

11. A term sheet defines:

Key deal terms before legal contractsMarketing budgetIPO documentsLP agreements

12. Anti-dilution protects:

Investors in down roundsFoundersLPsCustomers

13. Liquidation preference ensures:

Investors recover capital before common shareholdersFounders are paid firstTaxes are reducedIPO compliance

14. Convertible notes convert:

Debt into equity in future roundsIPO shares into debtCash into dividendsESOP into loans

15. SAFE stands for:

Simple Agreement for Future EquitySecured Asset Funding ExchangeShare Allocation for EquityStructured Agreement for Founders

16. Pre-money valuation refers to:

Value before investmentAfter fundingIPO valuationExit valuation

17. TVPI means:

Total Value to Paid-InTime Value Performance IndexTax Value Per InvestmentTotal Valuation of Portfolio Investments

18. DPI measures:

Distributions to Paid-In CapitalDebt per InvestmentDiscounted Portfolio IndexDividends Paid Internally

19. IRR evaluates:

Fund performance considering time value of moneyTax benefitsEmployee retentionIPO price

20. Diversification in a VC portfolio helps:

Reduce unsystematic riskMaximize single startup exposureAvoid exitsIncrease dilution

21. Due diligence includes:

Financial, legal, and technical reviewsMarketing campaignsIPO filingEmployee training

22. A GP commit means:

GPs invest their own money in the fundLPs commit earlyGovernment guarantees capitalFounders buy GP shares

23. Follow-on investment means:

VC invests again in same startupNew investor joinsStartup IPOFund merges

24. A lead investor:

Sets valuation and negotiates term sheetAudits LPsRuns marketingFiles taxes

25. A cap table tracks:

Equity ownership over roundsRevenue and expensesEmployee salariesIPO filings

26. Drag-along rights allow:

Majority shareholders to force saleMinority block salesFounders avoid exitEmployees liquidate shares

27. Tag-along rights protect:

Minority investors to sell on same termsMajority controlGPsRegulators

28. A board observer can:

Attend but not vote in meetingsControl company directionReplace CEOHire CFO

29. Post-investment value creation includes:

Mentorship and strategic supportImmediate exitTax refundDebt repayment

30. Clawback ensures:

GPs return excess carry if fund underperforms laterFounders repay loansEmployees lose ESOPsLPs exit early

31. A DPI of 2.0 implies:

Twice capital returned to LPsLossBreak-evenNo exits

32. A hurdle rate guarantees:

GPs get carry only after LPs’ minimum returnNo carry paidFixed IRRAutomatic IPO

33. The J-curve typically lasts:

Early years of fund lifeFinal 2 yearsEntire fund durationNever

34. Impact investing aims for:

Financial + social/environmental returnsShort-term profitsGovernment fundingHigh leverage

35. Diversity and inclusion improve:

Innovation and returnsOnly marketingFund expensesLP structure

36. LPs evaluate fund performance using:

IRR, TVPI, DPIESOP metricsCash flowSalaries

37. A VC fund lifecycle includes:

Fundraising → Investing → Managing → ExitingHiring → Firing → IPOBorrowing → LendingMerging → Auditing

38. Cross-border investing diversifies:

Geographic and currency riskESG reportsTax codesFounder ages

39. An exit multiple is:

Exit value ÷ invested capitalRevenue ÷ employeesAssets ÷ liabilitiesProfits × time

40. Power-law strategy means:

Expecting few high-return outliersEqual returns across all dealsBalanced 1:1 ratiosFixed IRR

41. Governance rights ensure:

Transparency and investor oversightTax exemptionMarketing budgetBoard elimination

42. Preferred equity gives:

Priority in payoutsCommon stock rightsTax benefitsESG advantages

43. AI in VC can improve:

Deal sourcing and diligence speedFund durationTax complianceFounder age analysis

44. Blockchain in VC can enable:

Tokenized equity and transparent ledgersManual recordkeepingCentralized fundingSlower exits

45. A GP-led continuation fund helps:

Extend fund life for strong portfolio companiesTerminate all LPsReinvest in loss-making startupsAvoid exits

46. Post-investment monitoring involves:

Tracking KPIs and board updatesIgnoring foundersAuditing LPsLegal filings only

47. Ethical investing ensures:

Sustainable and responsible capital allocationMax tax benefitShort-term gainsLeverage expansion

48. Future of VC includes:

AI-driven analysis, blockchain equity, decentralized fundsManual processesEliminating LPsNo digital tools

49. Guru Startups VC certification demonstrates:

Proficiency in venture capital principles and strategyMarketing skills onlyCoding expertiseCorporate accounting

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