位置8的问题 When selecting a venture capitalist, which one of the following characteristics is probably the least important?Underwriting experienceLevel of involvementContactsExit strategy清除选择

Question

BlackTom AI · Accepted Answer

When evaluating a venture capitalist, different traits contribute in various ways to the potential success of a funding relationship. 
Option 1: Underwriting experience. This is typically more relevant to lenders or traditional debt financing than to venture investing. VCs focus on growth potential, team quality, and scalable business models rather than underwriting skills for loans, so this trait is generally less critical in selecting a VC.
Option 2: Level of involvement. The degree of involvement a VC offers can be very important for a startup, since hands-on guidance, strategic help, and governance can accelerate product-market fit, hiring, and fundraising. A mismatch here (too hands-on or too hands-off) can significantly influence startup trajectory.
Option 3: Contacts. A VC’s network is a valuable asset, helping with customer introductions, key hires, strategic partnerships, and subsequent funding rounds. Strong networks can open doors that would otherwise stay closed, making this a highly desirable attribute.
Option 4: Exit strategy. An aligned exit plan is crucial; founders want assurance that the VC has a realistic path to liquidity and a track record of executing exits. Misalignment on exit expectations can lead to friction and undermines long-term planning.
Across these options, the least critical in the context of choosing a VC for a venture-backed startup tends to be underwriting experience, as it does not align with the core value VC firms provide, whereas involvement, network, and exit considerations are central to partnership quality and growth potential.

位置8的问题 When selecting a venture capitalist, which one of the following characteristics is probably the least important?Underwriting experienceLevel of involvementContactsExit strategy清除选择

View Explanation

Log in for full answers

Similar Questions

Chapter 7 of “Engineering your Startup” states that when investors evaluate a company, which of the following elements of a start-up is most important to deciding if they invest?

Considering our class discussion on startups and investing, which of the below are correct? (select all that apply)

Based on our class discussion, which of the below are true? (select all the apply)

Considering our class materials and discussion, which of the below are correct? (select all that apply)

位置4的问题 When selecting a venture capitalist, which one of the following characteristics is probably the least important?Underwriting experienceLevel of involvementContactsExit strategy清除选择

CVCs usually invest in early (versus late) stage of investments in a start-up firm.

Corporate Venture Capital is defined as minority ________ investment in entrepreneurial firms by established corporations. (one word)

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler