Management and Organizational Studies 1023A/B Chapter Notes -Initial Public Offering, The Venture Bros., Mezzanine Capital

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

Document Summary

To raise money, a firm can borrow, sell equity, or both. Most businesses are started by an entrepreneur. Entrepreneurs regularly leave large companies to start businesses (often using technology developed by these firms) Entrepreneur often holds an informal, low-budget discussion with people he trusts and usually talk about issues related to technology, manufacturing, personnel, marketing, and finance. Bootstrapping the process by which many entrepreneurs raise seed money to obtain other resources necessary to start their business. The initial seed money usually comes from the entrepreneur or other founders. Other cash comes from personal savings, the sale of assets (such as cars and boats), borrowing against the family home, loans from family members and friends, and loans obtained through credit cards. Entrepreneurs usually work regular full-time jobs until the business gets started. At this stage, banks or venture capitalists are not normally willing to fund the business.