entrepenuarship

Question 1

what are the annual sources of start-up funds?

Answer 1

• venture capitalists (38B)
• state funding 14 B
• angel investors 55B
• friends/ family/fools 70B

Question 2

what are angel investors?
how much do they invest?
where do they invest?
investment preference?
preferred company stage?
pre-money valuations?

Answer 2

• individuals who make a lot of money and are looking to. invest
• invest about 250-500k
• invest in places closer to them
• look for a company that can build once and sell a lot (highest - medical devices and equipment lowest- restaurants)
• prefer to invest during the early stages than later because there is a lot less capital
• pre-money evaluations (value of the company before investors put money) - a lot are willing to overpay to get into the deal

Question 3

what should be the percentages for success?

Answer 3

40 fail
40 okay
20 succeed- makes up for 80

Question 4

what are venture capitalists? what can there money do?
when do they enter?

Answer 4

• a big source of start-up capital for many companies
• equity investments are made to fund the launch, early development, and expansion of private and usually young companies
• when angles tap out - they help give advice to the form

Question 5

where do venture capitalist gets all their money?

Answer 5

pension funds
insurance companies
endowments
foundations
high net worth indv

Question 6

what offsets the high risk?

Answer 6

ROI because early investment
- they have an expectation of higher than average ROI (high risk = high return)

Question 7

who will a vc FUND?

Answer 7

• an entrepreneur
• venture can be a new idea, what id doing something or anything revolutionary

Question 8

what are the fundamental laws of business?

Answer 8

cost ad take loner

Question 9

what matters?

Answer 9

market opportunity

Question 10

how do you find the right VC?

Answer 10

• allied professionals -lawyers (a lot of legal docs) and accountants (money spent legitimately)
• industry specialization
• try to find one from the same industry so it is not a learning curve
• large operations have dedicated VC funds

Question 11

what do you need to prepare for VC?

Answer 11

• honest business plan
• key team members you need to hire
• clear strategic goals
• potential customers
• path towards liquidity

Question 12

what must you do to get the check?

Answer 12

• competitive deals get funded (bc they don’t want to miss out on what their colleagues think is the next big thing)
• probably give up majority sock
• golden rule - follow their advice
• be ready for fast lane- spend money quickly

Question 13

what are the two critical factors why money should be spent fast?

Answer 13

• the amount of money they get back
• length of time over which they get that money back

Question 14

what are a couple of things to keep in mind about VC?

Answer 14

• keep promises
• 10x return - will not make emotional decisions

Question 15

crowdfunding?

Answer 15

• becoming a lot more common
• Crowdfunding is when lots of people give small amounts of money to support a project or idea.

Question 16

corporate partnerships? why find one

Answer 16

• are overlooked
• key objective is to find a partner that benefits because it is more than just the ROI, there is fit with the company
• why
  source of funding
  product devopmemny
  leverage
  access to customers and distribution

Question 17

what is the value to large corporations?

Answer 17

• fast
• access new markets and customers and innovative tech
• new sales channels
• improve large company brand
• Startups can act quicker
• enter new markets
• test relationship that can lead to acquisition