Philosophy 1200 Lecture Notes - Lecture 7: Venture Capital Financing, Mezzanine Capital, Investment Banking

• School: Western University
• Department: Philosophy
• Course: Philosophy 1200
• Professor: Eric Desjardins

Document Summary

Bootstrap financing - entrepreneur supplies funds, prepares business plan, searches for initial outside funding. Seed-stage financing - venture capatalists provide funds to finish development of the concept. Early stage financing - venture capatalists provide funds to get business up and running. Latter stage financing (mezzanine financing) - typically includes 1-5 additional stages. Publicly markets, or private banks after financing source = venture capatalists exit by selling to strategic buyer, selling to financial buyer, or selling stock to the public. 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.