Management and Organizational Studies 1023A/B Chapter Notes - Chapter 7: Initial Public Offering, Venture Capital Financing, Private Equity Firm

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

Document Summary

Chapters how firms raise capital and dividends and dividend policy. Bootstrapping the process by which many entrepreneurs raise seed money and obtain other resources necessary to start their business. Initial funding of the firm the initial seed money usually comes from the entrepreneur or other founders. Must satisfy investors because banks are not willing to fund the business at this point: usually lasts 1 to 2 years. More info: comes from the saying pull yourself up by your bootstraps accomplish something on your own. Take the prototype and business plan on the road and determine whether they have a viable business for people to invest in. Venture capitalists individual or firms that invest by purchasing equity in new businesses and often provide entrepreneurs with business advice: pool money from various sources: financial and insurance firms. Angels (angel investors) wealthy individuals who invest their own money in new and emerging businesses at the very early stages in small deals.