Business Management

QUESTION 1

  1. Base your answer on the initial public offering prospectus of Zoom Technologies that was filed with the SEC.

Zoom used all the proceeds of the IPO to buy technology from Facebook.

QUESTION 2

  1. Base your answers on the following document:

The main objective of corporate venture capital funds is to have a sufficient return on investment (ROI) in order to satisfy their investors (which are multiple external limited partners). Thus, they will highly focus on optimization of the internal rate of return (IRR).

QUESTION 3

  1. Management of Pfizer Ventures takes a passive role in the companies in which Pfizer Ventures has a stake. They do not get involved in advising or guiding companies in their portfolio.

QUESTION 4

  1. The current market price of the common stock of ETSY are 10% below the IPO price.

QUESTION 5

  1. The Etsy revenue stream comes exclusively from advertising placed by non-Etsy sellers. Etsy sellers collect 100% of the sale price of their goods sold.

QUESTION 6

  1. Etsy is offered 13,333,333 shares of common stock to the public in its IPO.

QUESTION 7

  1. “Etsy Teams” are made up of Etsy sellers who collaborate on various projects and initiatives to enhance the Etsy community and the communities where Etsy sellers operate.

QUESTION 8

  1. One difference between corporate venture capital and traditional venture capital fund such as Brooklyn Bridge Ventures is the number of limited partners in the funds.

QUESTION 9

  1. Pfizer Ventures was an investor in the January 2016, series A round of Lodo Therapeutics.

QUESTION 10

  1. Base your answer on the initial public offering prospectus of Zoom Technologies that was filed with the SEC.

Zoom sold 20,869, 565 shares of common stock at a price of $50 per share in their 2019 IPO.

QUESTION 11

  1. Management of Pfizer Ventures will never take a seat on the board of directors of a company in which Pfizer Ventures has made an investment. This would expose Pfizer Ventures to excessive losses if the company failed.

 

True

False

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QUESTION 12

  1. Wells Fargo Bank was the lead underwriter for the Etsy IPO.

 

True

False

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QUESTION 13

  1. Etsy was founded in June 2005 in Brooklyn, New York as a marketplace for handmade goods and craft supplies.

 

True

False

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QUESTION 14

  1. Etsy does not consider natural disasters a relevant risk since sellers and buyers are all dispersed around the world.

 

True

False

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QUESTION 15

  1. In 2014, Etsy sellers generated Gross Market Sales (GMS) of $1.93 billion. Only 10% of these sales came from purchases made on mobile devices.

 

True

False

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QUESTION 16

  1. Base your answer on the initial public offering prospectus of Zoom Technologies that was filed with the SEC.

https://www.sec.gov/Archives/edgar/data/1585521/000119312519110919/d642624d424b4.htm

Zoom sold 20,869, 565 shares of common stock at a price of $50 per share in their 2019 IPO.

 

True

False

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QUESTION 17

  1. A venture capitalist may work backwards to value an early stage venture. She starts with the objective of earning 10x on the capital investment. It then becomes necessary to find out how the company will achieve a valuation at IPO consistent with returning 10x to the VC. The factors that must be taken into a account include the size of the market and the ability of the founders to control a significant part of this market while maintaining high gross margins.

 

True

False

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QUESTION 18

  1. Base your answers on the following document:

https://www.techmind.vc/en/corporate-venture-capital-vs-venture-capital-whats-the-difference/

Corporate Venture Capital Funds operate on a different and often longer investment time frame than venture capital funds that have multiple limited partners because corporate venture capital funds are willing to hold investments much longer as their investments return strategic value to the parent company (sole limited partner).

 

True

False

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QUESTION 19

  1. Base your answers on the following document:

https://www.techmind.vc/en/corporate-venture-capital-vs-venture-capital-whats-the-difference/

Venture capital funds typically realize financial gains for the limited partners when companies in their portfolios go public via an IPO or are purchased by another company.

 

True

False

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QUESTION 20

  1. In the ETSY IPO shares were offered by the company and by investors who bought shares when the company was private. The IPO gave initial investors such as Union Square Ventures a way to liquidate their initial investment in ETSY.

 

True

False

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QUESTION 21

  1. In 2014 30.9% of GMS came from an Etsy seller or an Etsy buyer outside of the United States.

 

True

False

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QUESTION 22

  1. Pfizer Ventures will only invest in late-stage rounds of venture funding to minimize its risk of loss.

 

True

False

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QUESTION 23

  1. Pfizer Ventures invests in companies that are of strategic interest to Pfizer Inc.

 

True

False

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QUESTION 24

  1. Entities affiliated with Union Square Ventures sold shares in Etsy’s IPO. The funds from these sales did not go to ETSY but rather to the funds that were managed and controlled by Union Square Ventures.

 

True

False

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QUESTION 25

  1. Pfizer Ventures will only make investments that offer an expected return of 18% per year over an eight-year period.

 

True

False

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QUESTION 26

  1. Base your answer on the initial public offering prospectus of Zoom Technologies that was filed with the SEC.

https://www.sec.gov/Archives/edgar/data/1585521/000119312519110919/d642624d424b4.htm

Investors who bought shares in the IPO of Zoom are insulated from further dilution of their ownership since Zoom will never have to issue additional shares of stock or issue convertible debt.

 

True

False

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QUESTION 27

  1. Pfizer Ventures turned down an opportunity to invest in the New York based drug development company because the corporate venture capital decisions of Johnson & Johnson and Abbvie were also investing.

 

True

False

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QUESTION 28

  1. The IPO of Etsy in 2015 was the sale of debt to the public.

 

 

True

False

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QUESTION 29

  1. After the ETSY IPO Union Square Ventures still owned an equity stake in ETSY.

True

False

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QUESTION 30

  1. Base your answers on the following document:

https://www.techmind.vc/en/corporate-venture-capital-vs-venture-capital-whats-the-difference/

Venture Capital with many limited partners must consider that the limited partners are expecting to receive cash compensation between 7-10 years after their initial investment. This means the General partner must make investments that are expected to go public or be acquired in this time frame.

 

True

False

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QUESTION 31

  1. Base your answers on the following document:

https://www.techmind.vc/en/corporate-venture-capital-vs-venture-capital-whats-the-difference/

An example of strategic value would be the development of a pharmaceutical product by a company that Pfizer Ventures has invested in which if successful can be used to accelerate the development of a drug which Pfizer Inc. is working on.

 

True

False

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QUESTION 32

  1. Base your answers on the following document:

https://www.techmind.vc/en/corporate-venture-capital-vs-venture-capital-whats-the-difference/

A venture capital fund like Union Square Ventures 2004, L.P. (USV 2004) which invested in ETSY when ETSY was a private company has multiple limited partners.

 

True

False

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QUESTION 33

  1. Base your answers on the following document:

https://www.techmind.vc/en/corporate-venture-capital-vs-venture-capital-whats-the-difference/

Unlike traditional venture capital funds which focus on financial returns the corporate venture capital fund may have dual objectives which are financial return and strategic value.

 

True

False

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QUESTION 34

  1. In its initial public offering of common stock, the public paid $14.96 per share.

 

True

False

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QUESTION 35

  1. Pfizer Ventures will never invest alongside other venture capital companies.

 

True

False

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QUESTION 36

  1. Entities affiliated with Union Square Ventures owned at least 5% of the shares of Etsy before it went public.

 

True

False

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QUESTION 37

  1. Etsy Inc raised $266,666,656.00 in their initial public offering.

 

True

False

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QUESTION 38

  1. Pfizer Ventures searches for investments in emerging companies that are developing transformative medicines and technologies that have the potential to enhance Pfizer’s pipeline and shape the future of our industry.

 

True

False

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QUESTION 39

  1. Pfizer Ventures is an example of corporate venture capital.

 

True

False

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QUESTION 40

  1. Base your answers on the following document:

https://www.techmind.vc/en/corporate-venture-capital-vs-venture-capital-whats-the-difference/

The term “evergreen” in the context of corporate venture capital is a refence to the limited partner’s willingness to invest without an expected exit time frame.

 

True

False

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QUESTION 41

  1. The objective of Pfizer Ventures is not a monetary return on its investments but rather to gain insider information from competitors.

 

True

False

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QUESTION 42

  1. Etsy became a publicly traded company in 2015.

 

True

False

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QUESTION 43

  1. Base your answers on the following document:

https://www.techmind.vc/en/corporate-venture-capital-vs-venture-capital-whats-the-difference/

Corporate Venture funds have only one Limited Partner.

 

True

False

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QUESTION 44

  1. Managers of Pfizer Ventures seek out investments that will enhance the drug development pipeline of Pfizer Inc. This is what is meant by a strategic investment.

 

True

False

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QUESTION 45

  1. The underwriters of the ETSY IPO collected $2 per share of the 16,666,666 shares offered to the public.

 

True

False

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QUESTION 46

  1. Base your answers on the following document:

https://www.techmind.vc/en/corporate-venture-capital-vs-venture-capital-whats-the-difference/

The limited partner in a corporate venture capital fund such as Pfizer Ventures would be the parent company Pfizer Inc.

 

True

False

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QUESTION 47

  1. Pfizer Ventures was one of the pharmaceutical companies that invested in the Accelerator IV fund sponsored by the Accelerator Venture Capital Corporation. The objective of the Accelerator IV fund is to nurture biotech companies that are being formed in the life science ecosystem of New York City.

 

True

False

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