Economics · Venture Capital Concepts
Consider the following technical terms defined in the venture capital industry: 1. 'Dry Powder' refers to the amount of committed capital raised but not yet deployed. 2. A 'Unicorn' is a privately held startup company with a valuation exceeding 1 billion USD. 3. 'Venture Debt' is a complementary debt financing provided to venture-backed startups, often including equity warrants. 4. The 'J-Curve' effect describes a model where fund returns are initially negative due to setup and seed costs before rising steeply later. 5. A 'Down Round' refers to a funding round where a startup is valued lower than its previous round. Which statement correctly evaluates their overall validity?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1None of the statements accurately reflect venture capital theory.
- 2Statement 5 is incorrect because down rounds are illegal in India.
- 3Only Statements 2 and 4 are correct while the others are incorrect.
- 4Statements 1, 2, 3, 4, and 5 are all correct.✓
Correct answer
Statements 1, 2, 3, 4, and 5 are all correct.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Venture Capital Concepts MCQs →Want more practice questions on Venture Capital Concepts?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Venture Capital Concepts