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Raghav is a very creative person and has always been working on innovating products and services that can make living healthy and hygienic. He developed a design of an air conditioner with an inbuilt air purifier as well. Since he did not get any financial support from any bank, he approached Nirvana Vent (VC), a venture capitalist firm. Though VC liked the idea but it refused to help Raghav at the seeding stage and asked him to come again if needed during second round financing.
Why was seed capital not given by VC when it was ready to fund the second round financing?
Why was seed capital not given by VC when it was ready to fund the second round financing?
- a)They did not like the idea.
- b)They did not have enough funds for the innovation.
- c)They doubt on the potential for rapid growth.
- d)They do not give preference to new businesses.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Raghav is a very creative person and has always been working on innova...
Venture capitalists are typically very selective in deciding what to invest in and as a rule of thumb:
- They may invest in one in four hundred opportunities presented to it,
- Looks for the extremely rare, yet sought after qualities, such as :
(a) innovative technology,
(b) potential for rapid growth,
(c) a well-developed business model
(d) an impressive management team. - Looks for an "exit" in the time frame of typically 3-7 years.
- Is inclined towards ventures with exceptionally high growth potential.
The VC do not fund for seed capital as its result and return both are not sure
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Raghav is a very creative person and has always been working on innova...
Why was seed capital not given by VC when it was ready to fund the second round financing?
Introduction:
The scenario presented states that Raghav, a creative individual, developed a design for an air conditioner with an inbuilt air purifier. However, he did not receive any financial support from banks and approached Nirvana Vent (VC), a venture capitalist firm. While VC liked the idea, they refused to provide seed capital but expressed interest in funding during the second round of financing.
Reason for VC's refusal:
The correct answer is option 'C,' which states that VC doubted the potential for rapid growth. There are several reasons why VC might have made this decision:
1. Market Analysis:
VC may have conducted a thorough market analysis and identified potential challenges in achieving rapid growth. This could include factors such as market saturation, limited demand, or strong competition. VC's doubts about the market potential would have influenced their decision not to provide seed capital.
2. Financial Viability:
VC may have assessed the financial viability of Raghav's product design. They might have questioned whether the product would generate sufficient revenue and profits to justify the investment. Without a strong business case and financial projections, VC may have been hesitant to provide seed capital.
3. Lack of Proof of Concept:
Raghav may not have provided enough evidence or a working prototype to demonstrate the effectiveness and feasibility of his air conditioner with an inbuilt air purifier. VC may have required more tangible proof of concept before committing seed capital to the project.
4. Insufficient Market Research:
VC might have felt that Raghav's market research was inadequate or lacked depth. Without a clear understanding of the target market's needs, preferences, and purchasing behaviors, it would be challenging to achieve rapid growth. VC may have wanted more comprehensive market research to support their decision to invest.
Conclusion:
In summary, VC's refusal to provide seed capital to Raghav was primarily driven by their doubts about the potential for rapid growth. This could be due to market analysis, financial viability concerns, lack of proof of concept, or insufficient market research. However, VC expressed interest in potentially funding during the second round of financing, indicating that they were open to reconsidering their decision based on further validation and progress made by Raghav.
Introduction:
The scenario presented states that Raghav, a creative individual, developed a design for an air conditioner with an inbuilt air purifier. However, he did not receive any financial support from banks and approached Nirvana Vent (VC), a venture capitalist firm. While VC liked the idea, they refused to provide seed capital but expressed interest in funding during the second round of financing.
Reason for VC's refusal:
The correct answer is option 'C,' which states that VC doubted the potential for rapid growth. There are several reasons why VC might have made this decision:
1. Market Analysis:
VC may have conducted a thorough market analysis and identified potential challenges in achieving rapid growth. This could include factors such as market saturation, limited demand, or strong competition. VC's doubts about the market potential would have influenced their decision not to provide seed capital.
2. Financial Viability:
VC may have assessed the financial viability of Raghav's product design. They might have questioned whether the product would generate sufficient revenue and profits to justify the investment. Without a strong business case and financial projections, VC may have been hesitant to provide seed capital.
3. Lack of Proof of Concept:
Raghav may not have provided enough evidence or a working prototype to demonstrate the effectiveness and feasibility of his air conditioner with an inbuilt air purifier. VC may have required more tangible proof of concept before committing seed capital to the project.
4. Insufficient Market Research:
VC might have felt that Raghav's market research was inadequate or lacked depth. Without a clear understanding of the target market's needs, preferences, and purchasing behaviors, it would be challenging to achieve rapid growth. VC may have wanted more comprehensive market research to support their decision to invest.
Conclusion:
In summary, VC's refusal to provide seed capital to Raghav was primarily driven by their doubts about the potential for rapid growth. This could be due to market analysis, financial viability concerns, lack of proof of concept, or insufficient market research. However, VC expressed interest in potentially funding during the second round of financing, indicating that they were open to reconsidering their decision based on further validation and progress made by Raghav.
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Raghav is a very creative person and has always been working on innovating products and services that can make living healthy and hygienic. He developed a design of an air conditioner with an inbuilt air purifier as well. Since he did not get any financial support from any bank, he approached Nirvana Vent (VC), a venture capitalist firm. Though VC liked the idea but it refused to help Raghav at the seeding stage and asked him to come again if needed during second round financing.Why was seed capital not given by VC when it was ready to fund the second round financing?a)They did not like the idea.b)They did not have enough funds for the innovation.c)They doubt on the potential for rapid growth.d)They do not give preference to new businesses.Correct answer is option 'C'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Raghav is a very creative person and has always been working on innovating products and services that can make living healthy and hygienic. He developed a design of an air conditioner with an inbuilt air purifier as well. Since he did not get any financial support from any bank, he approached Nirvana Vent (VC), a venture capitalist firm. Though VC liked the idea but it refused to help Raghav at the seeding stage and asked him to come again if needed during second round financing.Why was seed capital not given by VC when it was ready to fund the second round financing?a)They did not like the idea.b)They did not have enough funds for the innovation.c)They doubt on the potential for rapid growth.d)They do not give preference to new businesses.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Raghav is a very creative person and has always been working on innovating products and services that can make living healthy and hygienic. He developed a design of an air conditioner with an inbuilt air purifier as well. Since he did not get any financial support from any bank, he approached Nirvana Vent (VC), a venture capitalist firm. Though VC liked the idea but it refused to help Raghav at the seeding stage and asked him to come again if needed during second round financing.Why was seed capital not given by VC when it was ready to fund the second round financing?a)They did not like the idea.b)They did not have enough funds for the innovation.c)They doubt on the potential for rapid growth.d)They do not give preference to new businesses.Correct answer is option 'C'. Can you explain this answer?.
Raghav is a very creative person and has always been working on innovating products and services that can make living healthy and hygienic. He developed a design of an air conditioner with an inbuilt air purifier as well. Since he did not get any financial support from any bank, he approached Nirvana Vent (VC), a venture capitalist firm. Though VC liked the idea but it refused to help Raghav at the seeding stage and asked him to come again if needed during second round financing.Why was seed capital not given by VC when it was ready to fund the second round financing?a)They did not like the idea.b)They did not have enough funds for the innovation.c)They doubt on the potential for rapid growth.d)They do not give preference to new businesses.Correct answer is option 'C'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Raghav is a very creative person and has always been working on innovating products and services that can make living healthy and hygienic. He developed a design of an air conditioner with an inbuilt air purifier as well. Since he did not get any financial support from any bank, he approached Nirvana Vent (VC), a venture capitalist firm. Though VC liked the idea but it refused to help Raghav at the seeding stage and asked him to come again if needed during second round financing.Why was seed capital not given by VC when it was ready to fund the second round financing?a)They did not like the idea.b)They did not have enough funds for the innovation.c)They doubt on the potential for rapid growth.d)They do not give preference to new businesses.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Raghav is a very creative person and has always been working on innovating products and services that can make living healthy and hygienic. He developed a design of an air conditioner with an inbuilt air purifier as well. Since he did not get any financial support from any bank, he approached Nirvana Vent (VC), a venture capitalist firm. Though VC liked the idea but it refused to help Raghav at the seeding stage and asked him to come again if needed during second round financing.Why was seed capital not given by VC when it was ready to fund the second round financing?a)They did not like the idea.b)They did not have enough funds for the innovation.c)They doubt on the potential for rapid growth.d)They do not give preference to new businesses.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Raghav is a very creative person and has always been working on innovating products and services that can make living healthy and hygienic. He developed a design of an air conditioner with an inbuilt air purifier as well. Since he did not get any financial support from any bank, he approached Nirvana Vent (VC), a venture capitalist firm. Though VC liked the idea but it refused to help Raghav at the seeding stage and asked him to come again if needed during second round financing.Why was seed capital not given by VC when it was ready to fund the second round financing?a)They did not like the idea.b)They did not have enough funds for the innovation.c)They doubt on the potential for rapid growth.d)They do not give preference to new businesses.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Raghav is a very creative person and has always been working on innovating products and services that can make living healthy and hygienic. He developed a design of an air conditioner with an inbuilt air purifier as well. Since he did not get any financial support from any bank, he approached Nirvana Vent (VC), a venture capitalist firm. Though VC liked the idea but it refused to help Raghav at the seeding stage and asked him to come again if needed during second round financing.Why was seed capital not given by VC when it was ready to fund the second round financing?a)They did not like the idea.b)They did not have enough funds for the innovation.c)They doubt on the potential for rapid growth.d)They do not give preference to new businesses.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Raghav is a very creative person and has always been working on innovating products and services that can make living healthy and hygienic. He developed a design of an air conditioner with an inbuilt air purifier as well. Since he did not get any financial support from any bank, he approached Nirvana Vent (VC), a venture capitalist firm. Though VC liked the idea but it refused to help Raghav at the seeding stage and asked him to come again if needed during second round financing.Why was seed capital not given by VC when it was ready to fund the second round financing?a)They did not like the idea.b)They did not have enough funds for the innovation.c)They doubt on the potential for rapid growth.d)They do not give preference to new businesses.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Raghav is a very creative person and has always been working on innovating products and services that can make living healthy and hygienic. He developed a design of an air conditioner with an inbuilt air purifier as well. Since he did not get any financial support from any bank, he approached Nirvana Vent (VC), a venture capitalist firm. Though VC liked the idea but it refused to help Raghav at the seeding stage and asked him to come again if needed during second round financing.Why was seed capital not given by VC when it was ready to fund the second round financing?a)They did not like the idea.b)They did not have enough funds for the innovation.c)They doubt on the potential for rapid growth.d)They do not give preference to new businesses.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Raghav is a very creative person and has always been working on innovating products and services that can make living healthy and hygienic. He developed a design of an air conditioner with an inbuilt air purifier as well. Since he did not get any financial support from any bank, he approached Nirvana Vent (VC), a venture capitalist firm. Though VC liked the idea but it refused to help Raghav at the seeding stage and asked him to come again if needed during second round financing.Why was seed capital not given by VC when it was ready to fund the second round financing?a)They did not like the idea.b)They did not have enough funds for the innovation.c)They doubt on the potential for rapid growth.d)They do not give preference to new businesses.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
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