1. Venture capital funds will typically have a 25-year horizon.
True
False
2. Spotify used the proceeds from its IPO for corporate acquisitions.
True
False
3. The primary source of income for a general partner in a VC fund is the management fee the fund charges the limited partners.
True
False
4. The money raised by a VC fund from limited partners must be invested in its entirety during the first year of the fund’s existence.
True
False
5. Every limited partner in a VC fund has unlimited liability that arises from the funds investments.
True
False
6. Using the IPO value of a peer company is a good way to get a rough estimate of the potential value for a new venture that investors expect to be public within ten years. It is clearly a rough estimate the level of the stock market varies widely and the market for IPOs is also cyclical.
True
False