Study Guide FIN 425 Midterm 1
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Measuring returns in the PE/VC space (theoretical)
o How PE/VC correlates with the market
New share issuances (technical)
o Ownership percentages
o Shares issued
o Price per share
Options pools (technical)
o Pre-money vs. post-money
Dilution with new investors/down rounds (technical)
o Pro rata
o Full-ratchet provision
Liquidation Rights (technical)
Company valuation (technical and theoretical)
o Methodology and assumptions behind “comparable companies” method
Term sheet information (theoretical)
o Option pool
o Vesting schedule
o Liquidation preferences
o Anti-dilution clauses
Venture capital evaluation framework (theoretical)