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Which of the following funding arrangements would most likely appeal to a venture capitalist? More than one answer is correct - select all that apply.

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Which of the following funding arrangements would most likely appeal to a venture capitalist? More than one answer is correct - select all that apply. a) A 30% ownership share in a new business that is expected to issue stock to the public (an IPO) in three years that will produce a return of 80% for the equity owners b) Common stock that can be sold in approximately seven years to claim capital gains of 16% c) A 20 -year loan at an interest rate of 7% to fund construction of a building using the building as collateral c) A 20 -year loan at an interest rate of 7% to fund construction of a building using the building as collateral d) A short-term loan for working capital to fund the production of inventory e) An equity interest that will be bought out in three years at a projected return of 60%. f) A $20,000,000 investment in a new high-tech business with a complicated set of risks but a potential for creating a product that many customers will benefit from Bootstrapping is a funding strategy that seeks to optimize use of personal funds and other creative strategies to minimize cash outflows. Which of the following are some of those creative strategies for minimizing cash outflows that would be characteristic of bootstrapping? More than one answer is correct: select all that apply. a) utilizing independent contractors (freelancers) rather than full-time employees b) buying an office building during the first year the business is in operation c) bartering d) moonlighting e) using expensive marketing tactics to give the impression that the business is established and successful f) working at home rather than renting office space

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