Financing Strategy
The new venturist needs to realize the hunt for financial support is time consuming and requires much focus and planning. “The very process of raising money is costly and cumbersome. It cannot be done casually, nor can it be delegated. And it has inherent risks.” There needs to be a strategic approach to would-be investors that reflects the needs of the enterprise, those of the investor, and the entrepreneur. Figure 15.2 sets out a strategic framework that begins with the decision to go for a short-term or a long-term solution to financing, followed by a mix of equity versus debt financing from private or governmental sources.