Management and Organizational Studies 1023A/B Lecture Notes - Venture Capital Financing, Venture Capital, Private Equity Firm

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

Document Summary

Nov 7, 2012 / wednesday: bootstrapping is the process by which many entrepreneurs raise seed money and obtain other resources that are necessary to start their business. Negotiable financial instrument that represents a financial value: common stock is a security that represents ownership in a corporation. These stockholders exercise control by electing a board of directors and voting on corporate policy. These types of stockholders are on the bottom priority ladder for ownership structure: additionally, venture capitalists provide more than just financing. Therefore, they also provide counseling for entrepreneurs from when a business is just started to early stages of operation and so forth: venture capitalists are not foolish with their money. They actually know that only a few companies will survive to become successful. Initial public offering (ipo) is the first sale of stock by a private company to the public.