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Startups

Startups quiz

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Question 1 of 3Easy

What is self-funding without outside investors called?

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15
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8
ELO tiers
Spaced repetition

More questions about Startups

These visible examples show the question style. LearnClash turns the full topic into ranked duels and spaced repetition.

  1. 1 Easy

    Who provides personal wealth to fund early-stage startups?

    Answer: Angel investor

    Why: The theatrical label originated on Broadway, where wealthy donors who rescued productions from closing were called angels.

  2. 2 Medium

    What does MVP mean in startup development?

    Answer: Minimum viable product

    Why: Although Eric Ries popularized the concept in The Lean Startup, Frank Robinson originally coined the term in 2001.

  3. 3 Hard

    Which appraisal sets the fair strike price for employee stock options?

    Answer: 409A valuation

    Why: An independent 409A appraisal creates an IRS safe harbor that remains valid for up to 12 months or until a material event occurs.

  4. 4 Medium

    What document summarizes initial terms of an investment?

    Answer: Term sheet

    Why: While most clauses in a term sheet are non-binding, confidentiality and exclusivity sections are typically legally enforceable.

  5. 5 Hard

    Which investment contract delays valuation without acting as debt?

    Answer: SAFE

    Why: A SAFE carries no maturity date and accrues no interest, separating it from debt instruments like convertible notes.

  6. 6 Medium

    What is a funding round raised at a lower valuation called?

    Answer: Down round

    Why: Down rounds often trigger anti-dilution clauses that award extra shares to early investors, sharply reducing founder equity.

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