KSB-100 Lecture Notes - Lecture 20: Initial Public Offering, Pinterest, Airbnb
16 Nov 2016
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32355$ venture capital (taking other peoples money and putting in it your company) *give up ownership of company in exchange for 32355$ investment if (cid:449)e do(cid:374)"t ha(cid:448)e (cid:272)ash (cid:449)e a(cid:396)e out of (cid:271)usi(cid:374)ess. Selfstarter i(cid:374)(cid:272)o(cid:373)e state(cid:373)e(cid:374)t does(cid:374)"t (cid:272)ha(cid:374)ge (cid:271)e(cid:272)ause of (cid:272)ash i(cid:374)fusio(cid:374) (cid:272)o(cid:373)i(cid:374)g (cid:271)ut (cid:272)ash flo(cid:449) changes. Paying off negatives projected keeps the company on an upward swing (cumulative cash flow) Managing cash flow if the most important component. Unicorn is a term in the venture capital industry which denotes a start- up company whose valuation has exceeded billion. When they are losing so much money right now and operation is negative because they are betting on the future of the company. Company with limited number of shares puts it out to the public to allow for others to invest and reward initial investors so that they can get some of their money out.
