ABFM: Concepts and Practice · Part D: Emerging Business Solutions

Chapter 20: Start-ups, venture capital and private equity

How young firms are funded and how their investors earn: stages and rounds, the cap table, venture capital and private equity funds, and where banks fit.

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

• 20.1Start-ups and their funding stagesp. 269
• 20.2Rounds, the cap table and term sheetsp. 270
• 20.3Venture capital fundsp. 271
• 20.4Private equityp. 272
• 20.5Banks and the start-up economyp. 273
• Exam traps and quick checksp. 274
• Practice: 16 questions in three roundsp. 275
• Answers, with every wrong option explainedp. 277
• Make it stickp. 279
• Chapter 20 on one pagep. 280

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.