As illustrated in Figure 8.1, entrepreneurs have a number of sources of capital as their ventures develop. Notice that the level of risk and the stage of the firms development impact the appropriate source of financing for the entrepreneurial ventures. Using Figure 8.1, describe some of the sources of capital available to entrepreneurs, and discuss how they correlate to the varying levels of risk involved with each stage of the venture.

Figure 8.1 Who Is Funding Entrepreneurial Start-Up Companies? Financing Continuum The following diagram depicts the typical financing for start-up companies