Management and Organizational Studies 1023A/B Lecture Notes - Lecture 7: Travis Kalanick, Venture Capital Financing, Breakfast Cereal

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

Document Summary

Financing sources: the company has an idea, something they"ve been working on, and now they need some money. This is the first stage in bootstrapping: eventually they get to a stage (the last one) where they might go public or they might decide to stay private. 2: once they get the seed money and get the company rolling, it usually sparks interest of other businesses (venture capitalists) who will further invest. Venture capital: venture capitalists are individuals or firms that help new businesses get started and provide much of their early-stage financing, where they get money from outsiders who are not family and friends. Individual venture capitalists or angel investors are typically wealthy individuals who invest their own money in emerging businesses at the very early stages in small deals. Three reasons exist as to why traditional sources of funding do not work for new or emerging businesses: Banks wont lend them money because of these three things.