Spotify used proceeds from its IPO for corporate acquisition

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Reference no: EM132052801

1. Venture capital funds will typically have a 25-year horizon.

True

False

2. Spotify used the proceeds from its IPO for corporate acquisitions.

True

False

3. The primary source of income for a general partner in a VC fund is the management fee the fund charges the limited partners.

True

False

4. The money raised by a VC fund from limited partners must be invested in its entirety during the first year of the fund’s existence.

True

False

5. Every limited partner in a VC fund has unlimited liability that arises from the funds investments.

True

False

6. Using the IPO value of a peer company is a good way to get a rough estimate of the potential value for a new venture that investors expect to be public within ten years. It is clearly a rough estimate the level of the stock market varies widely and the market for IPOs is also cyclical.

True

False

Reference no: EM132052801

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