Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Personal savings - A. B. C. D. E. F. G. H. Angel Investor - A. B. C. D. E. F. G. H. Friends, family, and

Personal savings

- A. B. C. D. E. F. G. H.

Angel Investor

- A. B. C. D. E. F. G. H.

Friends, family, and "other fools"

- A. B. C. D. E. F. G. H.

Crowdfunding

- A. B. C. D. E. F. G. H.

Bootstrapping

- A. B. C. D. E. F. G. H.

Venture Capitalists

- A. B. C. D. E. F. G. H.

SBIR, STTR, SBA

- A. B. C. D. E. F. G. H.

Bank loans

A.

A difficult group to manage. If they do not invest and you are successful, they will be angry. If they do invest and you fail, they will be angry.

B.

Groups of investors raise pools of funds to make investments and take an equity position in the new venture. They assume that many will fail, but that a few will be big winners.

C.

Max your credit card, take a mortgage, and use you own bank account.

D.

Instead of equity, they take debt which has to be paid off before the equity investors can take any money out of the venture. Often the entrepreneurs take on large personal risk to provide a guarantee.

E.

ILinc used this. Computer and IT ventures often sell "vaporware" or other products for later delivery. The sales fund the venture.

F.

More experienced, older, and wealthier entrepreneurs may make early stage investments.

G.

Governments will often provide funding for new ventures to encourage economic development.

H.

Kickstarter, Indiegogo, and others

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

HBR Guide To Finance Basics For Managers

Authors: Harvard Business Review

1st Edition

1422187306, 978-1422187302

More Books

Students also viewed these Finance questions