The financial difficulties category involved the following factors:
1. Initial undercapitalization, 30 percent of the case studies.
2. Assuming debt too early. Too soon and in too large an amount.
3. Venture capital relationship problems. Differing goals, visions, and motivations of the entrepreneur and the venture capitalist.
Managerial problems involved two important factors:
Concept of a team approach.
Hirings and promotions on the basis of nepotism,
Poor relationships with parent companies and venture capitalists,
Founders who focused on their weaknesses rather than on their strengths,
Incompetent support professionals
- Human resource problems. Inflated owner ego, employee-related concerns,