SESSION 1 ASSESSMENT for The Legal Cheek Commercial Awareness Academy 2024-25: Introduction to Venture Capital – with Cooley
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1. What is Venture Capital (VC)?
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Capital invested in a project in which there is a substantial element of risk, typically a new or expanding business
Capital invested in a project which has a very low element of risk
Money lent to a high-risk, high-reward project
Shares issued in a portfolio of companies, where risk is evenly distributed throughout
2. Which of the following are central players in the VC ecosystem? Select ALL that apply.
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Accelerators
Bond markets
Credit unions
Founders
Ratings agencies
Q2 calculation
3. Which stage below does NOT appear in the VC life cycle?
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Exit stage
Mediation stage
Idea stage
Seed funding stage
4. What is the correct definition of a term sheet?
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A term sheet is a legally binding contract between investors and founders.
A term sheet outlines key terms and conditions for an investment deal, serving as a non-binding agreement.
A term sheet specifies only the financial terms of an investment.
A term sheet is signed upon discharge of the debt.
5. Which term below relates to the value of a company after it has raised money from investors?
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Post-money
Post-investiture
Accrued profit
Post-capitalism
6. Which term below matches the following definition: funding round in which a company is valued lower than it was in the previous.
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Down road
Down round
Reduced round
Down right
7. Which of the following is the most important attribute for a VC lawyer?
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Black letter law skills
Strong advocacy skills
Willingness to work long hours
A commercial approach
8. What is NOT a form of exit from a VC investment?
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IPO
Buy-out by private equity
A take-private
Strategic acquisition by a big company
9. In the context of employee incentives, which of the following best describes ‘options’?
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The option to acquire shares in the company at a later date
The option to cease your employment contract early if the company is not seeing rapid growth
The option to move to an office abroad within 5 years of joining the company
The option to increase the amount the company contributes to your pension
10. How many rounds of funding did Immunocore undergo?
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2
3
4
5
Calculation
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