...BPP Business School Finance Department Financing Entrepreneurial Initiatives Module Outline 1. Module Details It is a Level 7 (Master’s Level) elective module with 15 credits. As a pre-requisite students need to have taken Financial Statement Analysis or an equivalent Accounting course. There will be 10 sessions, 3 hours each every week. Tim Wiscarson will teach the course. 2. Aims and Objectives The course aims to provide students with a strong foundation in evaluating different business models and opportunities and understand the various ways unlisted companies can be built and listed. It is designed to expose the student to many different kinds of situations involving a critical evaluation of the business, for the purpose of determining its value and for seeking financing. It shows how the various financing and investment activities can have an impact on the structure, operations as well as the future of the business. 3. Syllabus 1. Outline The module aims to provide the students with an overview of analysis and valuation of different business models and entrepreneurial opportunities. It introduces different types and sources of financing and the various elements involved from both the management as well as the investor point. It aims to develop the students’ skills in addressing financing and investment issues within an entrepreneurial company and understand how to approach the market investors. As such it targets to enhance...
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...contact: The Business Link Toll-free: Fax: Email: Website: 1 800 272-9675 780 422-0055 (Edmonton) buslink@canadabusiness.ab.ca www.canadabusiness.ab.ca A Member of the Canada Business Network The Business Link is a not-for-profit organization supported by the Governments of Canada and Alberta, as well as other organizations committed to serving Alberta’s small business community. Disclaimer: The information presented in this document is intended as a guide only, and while thought to be accurate, is provided strictly "as is" and without warranty of any kind. The Business Link, its employees, its directors and members, its agents or contractors will not be liable to you for any damages, direct or indirect, or lost profits arising out of your use of information provided within this document, or information provided within The Business Link's websites. This material may be used, reproduced, stored or transmitted for non-commercial purposes; however, The Business Link's copyright is to be acknowledged. You may not use, reproduce, store or transmit this material for commercial purposes without prior written consent from The Business Link. © 2013 The Business Link ALTERNATIVE FINANCING OPTIONS FOR SMALL BUSINESSES (07/2013) Content Content ........................................................................................................................ 1 Purpose.................................................................................................................
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...INTRODUCTION As we are aware, finance is the lifeblood of business or it can be said as the most important part of all the business enterprises. To understand finance, you need to know the entire business indeed. Finance can be used for various reasons like expanding the business, investing and purchasing fixed assets like land and building, machinery so on. In order to survive in this competitive world every organisation need to have a good strength of finance available to their business or else they won't be able to survive in this world. Hence, it is very important to select the correct sources of finance available to the company. Finance can be in two types' external sources or internal sources. TASK ONE 1. SOURCES OF FINANCE AVAILABLE TO A BUSINESS Finance can be arranged from internal sources or external sources. External sources of finance are funds that come from outside the business. Here the business are getting loans from individuals or institutions that do have business relations directly e.g. banks. 1.1 Internal sources The main internal sources of finance for a start-up are as follows: Personal sources These are the most important sources of finance for a start-up, and we deal with them in more detail in a later section. As mentioned earlier, most start-ups make use of the personal financial arrangements of the founder. This can be personal savings or other cash balances that have been accumulated. It can be personal debt facilities which are...
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...found 10,000 ways that won’t work.” – Thomas Alva Edison “Most great people have attained their greatest success just one step beyond their greatest failure” -Napoleon Hill Contents 1 Venture Capital 4 2 Mechanics of raising equity capital 5 2.1 Equity financing for private companies – Sources for funding 5 2.1.1 Angel Investors 5 2.1.2 Venture Capital Firms 6 2.1.3 Institutional Investors 6 2.1.4 Corporate Investors 6 2.2 Outside Investors 6 2.3 Exiting an Investment in a Private Company 7 3 The process of start-up funding 8 3.1 Idea and co-founder stage 8 3.2 Family and friends stage 8 3.3 Seed or angel round 8 3.4 Venture Capital Round 8 4 The Initial Public Offering 10 4.1 Advantages and Disadvantages of Going Public 10 5 Key Elements for successful Entrepreneurship 11 6 The importance of Silicon Valley in the U.S. venture capital system 13 6.1 Venture Capital Investment in the U.S. 13 6.1.1 Venture Capital Investment since 2006 13 6.1.2 Investment by industry 13 6.1.3 Investment by regions 15 6.2 Evolution of Silicon Valley 15 6.3 Silicon Valley – an advanced high tech entrepreneurial habitat 16 6.4 The Power of Clustering 16 6.5 Features of an advanced high tech entrepreneurial habitat 16 6.6 The high-tech habitat: Value-added support 17 6.7 Impact of Stanford University on Silicon Valley 18 7 Entrepreneurship and Funding - Differences between Europe and U.S. 19 7.1 Venture Capital Investment...
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...Hochschule Rosenheim University Of Applied Sciences Financial options What options does a start up have to finance itself in the current market? Seminar paper University of Applied Sciences Fachhochschule Rosenheim faculty of business administration Presented by: Nicolas Jacobs Sebastian Zeitz Date: 12/18/2013 Address: Hochschulstraße 1 83024 Rosenheim E-mail: nicolasjacobs1@gmail.com sebastian.zeitz@stud.fh-rosenheim.de Matr. -Nr.: 822416 739045 Advisor: Prof. Dr. Ralph Kriechbaum Table of Contents 1. Introduction 3 1.1 Current market situation 3 1.2 Economic role of start-ups 4 2. Start-up life cycle 4 2.1 Early business stages 5 2.1.1 Seed stage 5 2.1.2 Start-up stage 5 2.1.3 Early stage 5 2.2 Expansion stages 5 2.2.1 Second stage 5 2.2.2 Third stage 6 2.3 Late business stages 6 2.3.1 Mezzanine phase 6 2.3.2 Bridge phase 6 2.3.3 Liquidation phase 6 3. Financial options 7 3.1 Seed financing sources 7 3.1.1 Angel investors 7 3.1.2 Incubators 8 3.1.3 Accelerators 8 3.1.5 Vendor Financing 9 3.1.6 Crowdfunding 9 3.2 Late financing sources 11 3.2.1 Mezzanine financing 11 3.2.2 Bridge financing 11 3.2.3 Initial Public Offering 12 3.2.4 Credits & Loans 12 4. A real life story 12 4.1 TransferWise 13 5. Conclusion 14 6. References 15 6.1 E-Books 15 6.2 Webpages 15 7. Honest declaration 16 1. Introduction This thesis has been written in the period of 9th of October and 18th of December...
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...320 EXAM REVIEW Difference between managers and entrepreneurs? |Characteristic |Entrepreneur | | | | |Manager | |Behavior |Desire for control |Delegation of Authority | |Management Style |One-man show |Management Team | |Driving Force |Creativity & Innovation |Organize and maintain what exists | |Organizational Growth |Rapid Reaction to opportunities |Medium/Long term Strategic Planning | |Organizational Structure |Informal and flexible to adapt to changes |Organized, formal, rigid org. structure | |Decision-making |Based on their intuition and gut feeling |Collect info& seek advice from inside and outside | |Description of Company |In terms of “vision, dream and mission” |In terms of market segments & profitability | |Attitude to Money ...
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...Sources of finance for entrepreneur Entrepreneurs as pioneering play an important role in achieving business success in today twenty-one century. They serve as agents of change provide creative, innovative ideas for business enterprises and help business grow and become profitable. There are two types of entrepreneurs which are business entrepreneur and social entrepreneur. Business entrepreneur is driven by a profit motive while social entrepreneur is driven by a mission to fill the gap left of the market and public sector. This essay will typically focus on business entrepreneur.（Frederick, H.H&D.F.Kurakto.2010）.The most important part for enterprise doing business is financing .Without money or capital which is extremely hard for entrepreneur starting up a business. However there are many sources of financing for entrepreneur. The essay will be illustrated from some sources of finance via an existing company. Sharetea Australia Pty is a company that specialist in food and beverages. The company has four shops located in different district s in Sydney. As a proprietary company which meant the company is owned by an individual that has limited shares, around fifty employees work in the company. Anthony Mu is the manager of the company which has 10 years working experiences. In this essay, it is necessary to discuss how do Anthony Mu raise funds as an entrepreneur for starting his business, and any source of finance that he used to maintain his company. It said that...
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...Funding A Business Venture John S. Garrett Jr. American Intercontinental University Abstract A business venture is a huge risk that involves money, time, patience, endurance and commitment. Money is needed to get the business off the ground and running. Time is required to give the business a chance to produce a profit. There are going to be good and bad days and you must have patience to see the venture through. There will be some tough and long roads ahead and you will need to endure them. If there is no commitment, you have wasted money, time, patience and endurance to a project that will affect you monetarily and possibly credit wise. Funding a Business Venture The pros and cons to starting-up a business have been weighed. I do not have the money to start-up a business and neither the patience or time to see a business venture through. I weighed my options in starting a business: borrow money, sell stock, or license the technology. I have decided to license my technology. By doing this, I will have freed up my time and will not have to worry about incurring the expense in manufacturing, marketing, distributing, and selling a product. (Jackim, 2009) Nothing is easy in business. Sacrifices have to be made and deciding in which direction to go are major decisions. Go and talk with an investment banker. An investment...
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........................................................................................................1 2.2 Type of Asset and cost...............................................................................................................................2 2.3 Vehicle purchase options...........................................................................................................................2 -Chattel mortgage.......................................................................................................................................2 -Leasing.......................................................................................................................................................2 -Venture capital..........................................................................................................................................2 2. Soap............................................................................................................................................................3 2.1 Type of asset and cost................................................................................................................................3 2.2 Soap purchase options...............................................................................................................................4 -Owner’s capital contribution...........................................................................
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...PRIMER ON VENTURE CAPITAL IN MAINE . Charles J. Spies III Chief Executive Officer Timothy P. Agnew Principal Author The Finance Authority of Maine and Masthead Venture Partners would like to acknowledge and thank Governor John E. Baldacci, former Governor Angus S. King, Jr. and the Maine Legislature, who have consistently supported the efforts of Maine entrepreneurs, and the programs and services of the Finance Authority of Maine. Through their determination and support, Maine has developed perhaps the best array of programs and services for financing fledgling technology-based businesses of any state in the nation Copyright 2003 Finance Authority of Maine. All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means without the prior written permission of the Finance Authority of Maine. Finance Authority of Maine, 5 Community Drive, P.O. Box 949, Augusta, ME 04332-0949 Tel: (207) 623-3263 or (800) 228-3734 TYY: (207) 626-2717 E-mail:info@famemaine.com Web Site: www.famemaine.com April 2003 2 TABLE OF CONTENTS PAGE CHAPTER 1: CHAPTER 2: CHAPTER 3: CHAPTER 4: CHAPTER 5: CHAPTER 6: CHAPTER 7: APPENDIX A: APPENDIX B: INTRODUCTION .................................................................................. 1 WHAT VENTURE CAPITAL IS (AND IS NOT)...................................... 3 HOW VENTURE CAPITAL INVESTORS WORK ................................... 6 HOW TO APPROACH VENTURE INVESTORS...
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...1 LESSON- 1 ENTREPRENEUR AND ENTREPRENEURSHIP Dr. Jyotsna Sethi STRUCTURE 1.0 Introduction 1.1 Objectives 1.2 Entrepreneurship as a Career Option 1.3 Concepts and Definitions 1.3.1 Entrepreneur 1.3.2 Entrepreneurship 1.3.3 Enterprise 1.3.4 Difference between Entrepreneur and Entrepreneurship 1.4 Role of Entrepreneurship in Economic Development 1.4.1 Entrepreneurship and Economic Development 1.4.2Entrepreneurship and Education 1.5 Functions of an Entrepreneur 1.6 Innovation 1.7 Risk and Uncertainty Bearing 1.8 Organization 1.9 Functions Performed by an Imitator Entrepreneur 1.10Entrepreneur vs. Manager Relationship 1.11 Summary 1.12 Glossary 1.13 Self-Assessment Questions 1.14 Further Readings 1.0 INTRODUCTION Do you know that there are millions of unemployed youth in the country and by the time you graduate, this number would have increased substantially? Do you want to be part of that group which keeps knocking from pillar to post, checking with employment exchanges, relatives, friends, and neighbours and still not able to get a job to their liking and then settle for a second or third rate job? You can also choose to be like Mr. Patel of Nirma who was a chemist’s assistance and has a Rs. 2500 crore company today. Did you know that the original Mr. Bata was a cobbler? And now has stores in more than 30 countries all over the world. Or...
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...e-Journal VENTURE CAPITAL IN INDIA D. P. WARNE*; PINKI INSAN** *Chaudhary Devi Lal University, Sirsa, Haryana-125055. **Shah Satnam Ji P.G. Girls College, Sirsa, Haryana- 125055. ABSTRACT India is the largest democracy on the planet and second most populous country in the world. Its extraordinary history is intimately tied to its geography. A meeting ground between the East and the West, it has been invader’s paradise. In the last one and half decades, India has proved itself as a destination for Information Technology (IT) and Business Process Outsourcing (BPO). India is also fast emerging as a major center for cutting-edge research and development (R&D) projects for global multinational companies. Lot of activities are happening in India in various sectors such as IT, BPO, Knowledge Process Outsourcing (KPO), Semiconductors, Biotechnology, Textiles, Manufacturing, and Engineering recently. This study is an attempt to explore the trends and developments in Venture Capital financing in India through an in‐depth analysis of these investments over the last 5 years (2005‐2009). INTRODUCTION The Venture capital sector is the most vibrant industry in the financial market today. Venture capital is money provided by professionals who invest alongside management in young, rapidly growing companies that have the potential to develop into significant economic contributors. Venture capital is an important source of equity for start-up companies. Venture capital can be visualized...
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...considered in selecting that country. Write down these variables. Starbucks is a company that has been founded, establishes, and altered based upon the United States of America standards. They have grown internationally in over fifteen locations. The growth of their company internationally is due to their specific business strategies and international partners. The three business strategies that Starbucks has is; Joint Ventures, Licenses, and company-owned operations. All three of these strategies benefit Starbucks in more than one way. It allows the company to keep growth within the company under a strong brand. It allows the company to cut cost for expansion, and it also helps the company to make sure all business ventures they embark upon are ones that will ultimately benefit the company. The most important strategy Starbucks has is Joint Venture. This particular strategy encompasses all three of their strategies. “A joint venture can help your business grow faster, increase productivity and generate greater profits. A successful joint venture can offer: • access to new markets and distribution networks • increased capacity • sharing of risks and costs with a partner • access to greater resources,...
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...planning is the long-term process of wisely managing your finances so you can achieve your goals and dreams, while at the same time negotiating the financial barriers that inevitably arise in every stage of life. Remember, financial planning is a process, not a product. The 12 Best Sources Of Business Financing Where and how you finance an operation can be the difference between dominance and failure. All money may sound like good money in this environment. It isn’t. Often it makes the most sense to tap a few different sources of capital. One deal I arranged involved seven funding sources. That sounds like a hassle, but it ended up greatly reducing the company’s cost of capital and saving it from bankruptcy. There are myriad financing sources available for American entrepreneurs (see Handbook of Business Finance at www.uentrepreneurs.com). Here are the 12 best, from least attractive to most. Two glaring omissions: venture capital–VCs fund just 3,500 of the 22 million small outfits in the U.S., and they only tend to hunt for companies with the potential for torrential growth–and a founder’s own savings. If you don’t know by now that financiers want to see some of your own skin in the game, you may already be in over your head. 12. Angel equity. If you must sell an ownership stake to get your company off the ground, start by finding a respected industry executive who is willing to invest a reasonable amount and give your venture credibility with other investors. The advice and networking–without...
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...AY2011-12 TERM 2 MGMT104 ENTREPRENEURIAL MANAGEMENT Prof. Tan Wee Liang Group Report Done by: Audrey LOW Hui Xin Justus WEE Rui Hao LUO Jingwei Nicolas Olivier Valentin VILMIN TEO Wei Xin Entrepreneurial Management Group Report 1 Contents Abstract ........................................................................................................................................................ 4 Introduction ................................................................................................................................................. 5 Background of Manager............................................................................................................................ 5 Background of Entrepreneur ..................................................................................................................... 6 Attributes and personal beliefs system of both Manager and Entrepreneur ............................................. 7 Evaluation of Interviews ............................................................................................................................. 8 Manager’s Views on Entrepreneurship – Michael Goh ............................................................................ 8 Entrepreneur’s Views on Entrepreneurship – Peter Low .......................................................................... 9 Comparison of Views....................................................................
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