On a Typical Institutional Investment How Much Should Your Venture

question 23

Multiple Choice

On a typical institutional investment how much should your venture expect to be paying in legal fees?

• A) Zero, this is handled by the VC
• B) $5,000 to $10,000
• C) $20,000 or more
• D) 50% of the amount you are raising

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Definitions:

Incremental Sales

The additional sales generated from a specific marketing campaign, sales activity, or product change, beyond regular expected sales.

Straight-Line Depreciation

A technique for distributing the expense of a physical asset evenly across its lifespan.

After-Tax Discount Rate

After-tax discount rate is the rate used to determine the present value of future cash flows after considering the effects of taxes.

Working Capital

The difference between a company's current assets and current liabilities, indicating its operational liquidity.