FINANCE A venture capitalist is a person who invests in a business venture‚ providing capital for start-up or expansion. Venture capitalists are looking for a higher rate of return than would be given by more traditional investments. Simply put‚ venture capital is other people’s money. It is financing for new‚ usually high-risk start-up businesses just like the new product that you want to bring to market. There are a lot of well-known firms whose names you would recognize that were financed
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shareholders and directors funds - Family and friends - Business angels - Clearing banks (overdrafts‚ short or medium term loans) - Factoring and invoice discounting - Hire purchase and leasing - Merchant banks (medium to longer term loans) - Venture capital A key consideration in choosing the source of new business finance is to strike a balance between equity and debt to ensure the funding structure suits the business. The main differences between borrowed money (debt) and equity are that
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* Serial entrepreneur * Lifestyle entrepreneur * Treps Paraphrasing: Entrepreneur is a person who is willing to put his career and financial security on line with risk in name of new idea and spending time as well as money in new venture. Entrepreneurs have managerial skills‚ team building skills‚ problem solving skills‚ skills related to creativity and change management skills for managing change in business norms resulting from implementing new ideas. Extroversion and risk taking
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PROGRAMME: BABS4 PERIOD: Feb.2013-May 2013 LECTURER: David Mwaura Due Date: 18th of April 2013 Table of Contents Questions Q. 1 – Starbucks’ foreign direct Investment 2-4 q. 2 – Strategic role of hrm 4-7 q. 3 – Local joint venture preferred over pure licensing 7-9 q. 4 – Starbucks enters with wholly owned subsidairy 9-11 references 12 Starbucks’ Foreign Direct Investment 1. Initially Starbucks expanded internationally by licensing its format to foreign operators
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__________ 1. Most rapid growth ventures also follow conventional organisational patterns and structures. True False 2. Entrepreneurial leaders generally strive to be at the centre of attention in their ventures. True False 3. Entrepreneurial leaders are quick to give credit and recognise good performance‚ and they always accept more than their share of the blame when things don’t work out. True False 4. Workers joining an entrepreneurial venture can expect to receive more guidance
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A REPORT ON “A STUDY ON PRIVATE EQUITY IN INDIA AND ANALYSIS ON PRIVATE EQUITY INVESTMENTS” SUBMITTED BY SUBHASH KONA ROLL NO: 10138 Date: 9th October 2010 A REPORT ON “A STUDY ON PRIVATE
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can partake in. In most cases when starting a business there are two ways to procure the essential funding needed to make this happen; debt financing and equity financing. Debt financing is the main source of startup capital for many new business ventures. Generally‚ entrepreneurs will attempt to take out small business loans through banks. This method is by far the most reliable way to secure a business’ commerce. However they are several drawbacks and obstacles associated with this type of financing
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As we know‚ cash is the most important factor to every company to exist and develop. Without cash‚ the business would not be able to survive. Cash is required for all activity of a company‚ such as buying new premises‚ investing on a plan‚ developing a product‚ buying new machines‚ equipments‚ etc… So every company always look for different sources of finance that can help them maintain and develop the businesses. There are various sources of finance that the companies need to consider in particular
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Mergers and Joint Ventures Introduction This week the team discusses the difference between Mergers and Joint ventures. A merger is any coming together of companies into one and invariably when two or more companies work together on a common goal is a joint venture. Below we discuss the different types of mergers and joint ventures. The types of mergers are as follows: horizontal‚ vertical‚ conglomerate‚ and lastly a joint venture. Horizontal Horizontal mergers occur when there is more
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Initially‚ the founder invested $800‚000 and received 8 million shares of stock. Starware now needs to raise a second round of capital‚ and it has identified an interested venture capitalist. This venture capitalist will invest $1 million and wants to own 20% of the company after the investment is completed. a. How many shares must the venture capitalist receive to end up with 20% of the company? What is the implied price per share of this funding round? b. What will the value of the whole firm be after this
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