New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    If a startup that raises $1 billion in a single round of

    funding it is called?
    A Dragon Correct Answer Incorrect Answer
    B Crowdfunding Correct Answer Incorrect Answer
    C Cliff Correct Answer Incorrect Answer
    D Bridge Loan Correct Answer Incorrect Answer
    E Bootstrapping Correct Answer Incorrect Answer

    Solution

    Dragon: A dragon is a rare startup that raises $1 billion in a single round of funding. Uber is an example of a dragon startup. Crowdfunding: Crowdfunding is an alternative, accessible, more democratic form of funding where a company sources capital from a wide range of investors and clients who put up money for a business — purely because of their immediate, individual interest in its offering. Many startups will offer pre-orders of their products or services at discounted rates to raise money via crowdfunding. Cliff: The cliff for vesting is a period of time required before employees can claim percentages of their shares. The cliff is typically one year, and it's meant to keep employees — particularly CEOs — around through the early stages rather than taking the benefits and leaving. Bridge Loan: A bridge loan is a short-term loan — usually covering two weeks to three years — that helps a startup access money in between rounds of funding. Bootstrapping: When a startup is bootstrapping, it's self-funded. Especially for brand new startups, entrepreneurs will use their own savings as well as money from friends and family to get the business started. More than 80% of startups start out through bootstrapping.

    Practice Next

    Relevant for Exams: