FINANCING THE BUSINESS
In evaluating the appropriateness of financing alternatives, particularly angel versus venture-capital financing, an entrepreneur must determine the amount and the timing of the funds required, as well as the projected company sales and growth. Conventional small businesses and privately held middle-market companies tend to have a difficult time obtaining. External equity capital, especially from the venture-capital industry. Most venture capitalists like to invest in software biotechnology, or high-potential ventures like the numerous ones of Richard Branson or Mark Zuckerberg’s Facebook. The three types of funding as the business develops are indicated in Table 12.1. The funding problems, as well as the cost of the funds, differ for each type. Early-stage financing is usually the most difficult and costly to obtain. Two types of financing are available during this stage: seed capital and start-up capital. Seed capital, the most difficult financing to obtain through outside funds, is usually a relatively small amount of funds needed to prove concepts and
FINANCING THE BUSINESS
In evaluating the appropriateness of financing alternatives, particularly angel versus venture-capital financing, an entrepreneur must determine the amount and the timing of the funds required, as well as the projected company sales and growth. Conventional small businesses and privately held middle-market companies tend to have a difficult time obtaining. External equity capital, especially from the venture-capital industry. Most venture capitalists like to invest in software biotechnology, or high-potential ventures like the numerous ones of Richard Branson or Mark Zuckerberg’s Facebook. The three types of funding as the business develops are indicated in Table 12.1. The funding problems, as well as the cost of the funds, differ for each type. Early-stage financing is usually the most difficult and costly to obtain. Two types of financing are available during this stage: seed capital and start-up capital. Seed capital, the most difficult financing to obtain through outside funds, is usually a relatively small amount of funds needed to prove concepts and
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