BUA 440 Study Guide - Midterm Guide: Decision-Making, Growth Capital, Ophanim
Document Summary
Session 14: by now, you should have already noticed that there is a potential conflict of interest between an entrepreneur and venture capitalists. Invest in a bunch of company they are fine with some of them failing (vc) Egg in one basket: based on what you have learnt until now about venture financing, how would you interpret the expression there is good money and there is bad money . Bring financial resources but if they come to early met deter the entrepreneur from experimenting and making changes. Add value but take away contr marginalize the entrepreneur. Focus on value but having to much entrepreneur can loose discipline and make more mistakes then necessary. You should be able to apply disruptive principles" to develop the idea for your elevator pitch. Built in exit strategy but limited in options. A lot more slower cuz of control system. Increase company valuation so next stage and will come for less control.
