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FAQs on Entrepreneurship Television Shows

In 2018, there were at least 15 shows on television about entrepreneurship. The shows included comedy (Silicon Valley), food (Restaurant Startup), Technology (Tech Stars), turnarounds (The Profit), manufacturing (How It’s Made), and finance (Dragon’s Den). The show that best addresses the primary topic of this book, entrepreneurial finance, is Shark Tank.

Here are a “Baker’s dozen” (13) of the most common finance-related questions asked of entrepreneurs by investors on television shows. Comprehensive, detailed explanation of how to answer these questions is located throughout the chapters of the book. Chapter 14 will give you the straight, simple answers to these questions in a “CliffsNotes” version, and will identify the chapter where more information can be found on each topic. I am certain that if you thoroughly read this book you will be well armed to successfully answer all of the following questions without the answer sheet.

Question 1: How much money do you need?

Question 2: What is the value of your company if you want an investment of $250,000 for 7% of equity in your company?

Question 3: Is the $3,571,428 valuation a premoney or postmoney valuation?

Question 4: Your valuation is crazy! How can you justify that high valuation?

Question 5: What is your company’s EBITDA?

Question 6: Do you want debt or equity financing?

Question 7: Who would you rather have as an investor, him or me?

Question 8: What are the company’s gross margins?

Question 9: Does your company have a subscription model?

Question 10: What is the company’s burn rate?

Question 11: What is the company’s customer acquisition cost?

Question 12: How do I get my money back?

Question 13: Why should I invest in you?