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Dealcroft - Private Markets Assessment

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This assessment has 15 questions across three sections. Time yourself - a sharp analyst completes this in under 30 minutes. Answer honestly. There are no trick questions. There is no negative marking.

Section A — Private Markets & Deal Fundamentals (MCQ)

A founder owns 100% of a startup.

Before Series A, a 15% ESOP pool is created.

Series A investor invests ₹30 crore at a pre-money valuation of ₹120 crore.

Series B investor invests ₹60 crore at a pre-money valuation of ₹300 crore.

Assuming no ESOP top-up after Series A, what is the founder's ownership after Series B?

A founder owns 100% of a startup.Before Series A, a 15% ESOP pool is created.Series A investor invests ₹30 crore at a pre-money valuation of ₹120 crore.Series B investor invests ₹60 crore at a pre-money valuation of ₹300 crore.Assuming no ESOP top-up after Series A, what is the founder's ownership after Series B?
A
B
C
D

A VC fund makes 20 investments of equal size.

Expected outcomes:

12 fail completely. 5 return 2x. 2 return 5x.

Ignoring fees, what minimum return must the final investment generate for the fund to achieve a 4x gross MOIC?

A VC fund makes 20 investments of equal size.Expected outcomes:12 fail completely. 5 return 2x. 2 return 5x. Ignoring fees, what minimum return must the final investment generate for the fund to achieve a 4x gross MOIC?
A
B
C
D

Startup A
ARR = ₹20 crore
Growth = 120%
Gross Margin = 80%
Burn = ₹3 crore/month

Startup B
ARR = ₹20 crore
Growth = 60%
Gross Margin = 90%
Burn = ₹50 lakh/month

If both trade at identical ARR multiples, which statement is most defensible?

Startup AARR = ₹20 croreGrowth = 120%Gross Margin = 80%Burn = ₹3 crore/monthStartup BARR = ₹20 croreGrowth = 60%Gross Margin = 90%Burn = ₹50 lakh/monthIf both trade at identical ARR multiples, which statement is most defensible?
A
B
C
D

A company generates ₹50 crore EBITDA.
A PE fund acquires it at 8x EBITDA.
Five years later:
EBITDA doubles.
Exit multiple falls to 7x.
Ignoring debt, what gross MOIC does the PE fund achieve?

A company generates ₹50 crore EBITDA.A PE fund acquires it at 8x EBITDA.Five years later:EBITDA doubles.Exit multiple falls to 7x.Ignoring debt, what gross MOIC does the PE fund achieve?
A
B
C
D

A ₹1,000 crore VC fund charges:

2% management fee for first 5 years 1.5% thereafter

Fund life = 10 years

Gross proceeds at liquidation = ₹2,500 crore

20% carry after return of capital.

How much carry do GPs receive?

A ₹1,000 crore VC fund charges:2% management fee for first 5 years 1.5% thereafter Fund life = 10 yearsGross proceeds at liquidation = ₹2,500 crore20% carry after return of capital.How much carry do GPs receive?
A
B
C
D

A VC invested ₹20 crore for 20% ownership with a 1x non-participating liquidation preference.

The company is sold for ₹50 crore.

How much does the VC receive?

A VC invested ₹20 crore for 20% ownership with a 1x non-participating liquidation preference.The company is sold for ₹50 crore.How much does the VC receive?
A
B
C
D

Which of the following is NOT typically found in an investor deck for a pre-IPO company?

Which of the following is NOT typically found in an investor deck for a pre-IPO company?
A
B
C
D

A VC fund invested equally into 5 startups.

Returns:

Company A = 0x Company B = 0x Company C = 1x Company D = 3x Company E = ?

The overall fund returned exactly 3x. Company E returned:

A VC fund invested equally into 5 startups.Returns:Company A = 0x Company B = 0x Company C = 1x Company D = 3x Company E = ? The overall fund returned exactly 3x. Company E returned:
A
B
C
D

Company:

Market Cap = ₹800 crore

Debt = ₹300 crore

Cash = ₹150 crore

Minority Interest = ₹50 crore

Enterprise Value equals:

Company:Market Cap = ₹800 croreDebt = ₹300 croreCash = ₹150 croreMinority Interest = ₹50 croreEnterprise Value equals:
A
B
C
D

Company A:

ARR ₹10 crore Growth 120% Gross Margin 75%

Company B:

ARR ₹20 crore Growth 20% Gross Margin 75%

All else equal. Which statement is most likely true?

Company A:ARR ₹10 crore Growth 120% Gross Margin 75% Company B:ARR ₹20 crore Growth 20% Gross Margin 75% All else equal. Which statement is most likely true?
A
B
C
D

Four businesses are available:

A.

EBITDA Margin 5% Growth 5%

B.

EBITDA Margin 25% Growth 15%

C.

EBITDA Margin 50% Growth -10%

D.

EBITDA Margin 10% Growth 0%

Which would generally attract the strongest PE interest?

Four businesses are available:A.EBITDA Margin 5% Growth 5% B.EBITDA Margin 25% Growth 15% C.EBITDA Margin 50% Growth -10% D.EBITDA Margin 10% Growth 0% Which would generally attract the strongest PE interest?
A
B
C
D

Two startups raise at ₹100 crore valuations.

Startup A:

Revenue ₹20 crore Growth 80%

Startup B:

Revenue ₹40 crore Growth 20%

Which startup is overvalued?

Two startups raise at ₹100 crore valuations.Startup A:Revenue ₹20 crore Growth 80% Startup B:Revenue ₹40 crore Growth 20% Which startup is overvalued?
A
B
C
D

Section B — Analytical (Short Answer)

You are screening a pre-IPO company in the logistics sector. It has ₹40 crore revenue, ₹3 crore PAT, is asking for a valuation of ₹120 crore, and has 3 listed peers trading at 18x P/E. Is this valuation justified? Write 3-4 sentences with your reasoning.

A founder tells you their startup is "pre-revenue but the market size is $10 billion." What are the three most important questions you ask before considering any investment? Explain briefly why each matters.

Section C — Situational

You're a junior analyst. Your deal lead asks you to prepare a one-page investment memo on a company by tomorrow morning. You've never written one before and it's 6pm. What do you do?