Management and Organizational Studies 1023A/B Lecture Notes - Lecture 7: Venture Capital Financing, Preferred Stock, Initial Public Offering

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Mos- chapter 7 lecture notes: funding coming from the owner, initial funding of the firm. 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 sayings, 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. Used to develop a prototype/ still an idea. The extent of the venture capitalists" involvement depends on the experience of the management team. One of their most important roles is to provide advice. Venture capitalists know that only a handful of new companies will survive to become successful firms. It is a common practice to syndicate-seed- and early-stage venture capital investments.