BUS 314 Lecture Notes - Lecture 4: Corporate Venture Capital, Startup Company, Crowdfunding

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 314
• Professor: Andrew Harries

Document Summary

Chapter 3: who"s got the money? (where to look) Ask any entrepreneur about his or her greatest challenge, and the conversation will likely turn to capital. Finance is the lifeblood of every company, but for new firms, capital is especially critical. Initial start up funding ranges from 0 - k - k: competitive advantage: hiring key staff, public relations, marketing, and sales. Average roi for early-stage venture capital = 21. 5% annually over 30 years. If business succeeds: s&p 500 (stock market) = 11. 69% per year. Include interest rate, repayment terms, and length of the loan period include # of shares, % of company they"re purchasing, and when shares will be issued: commercial loans. Bank loans = debt that needs to be repaid with interest. Local = more time to learn about you and your business: develop a relationship with your bank, checking account, personal car loan, mortgage, etc.