Management and Organizational Studies 1023A/B Lecture Notes - Lecture 7: Initial Public Offering, Venture Capital Financing, Venture Capital
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MOS 1023A/B Full Course Notes
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The process by which many entrepreneurs raise seed money and obtain other resources necessary to start their businesses. The initial seed money usually comes from the entrepreneur or other founders. Other cash may come from personal savings, the sale of personal assets, loans from family and friends, use of credit cards. The seed money, in most cases, is spent on developing a prototype of the product or service and a business plan. The seed money can come from savings, credit cards, etc. They put their own money into this vision. It"s usually spent trying to make a prototype and come up with a business plan. Usually this lasts about a year or two. If it lasts really long, it is probably a bad idea. Venture capitalists are individuals or firms that help new businesses get started and provide much of their early-stage financing.