BU121 Lecture Notes - Lecture 11: Operating Cash Flow, Cash Flow, Income Approach
Document Summary
Financing through the venture life cycle: early maturity stage: growth slows, most value realized consider exit, new venture we are at the feasibility / developmental stage, business angel: independently wealthy and just wants to help out. Still wants to make a return, but does not have a business behind them. Dragons den: venture capitalists: they have a business, their business is investing in other firms, first round financing: banks won"t give you money until they see the potential for you to pay them back. Therefore, you need to go to these people to build up credit history: mezzanine: debt you can convert into equity if you decide that is a better road, liquidity: taking your company public. Only made 12 sales, and valued them selves at 1. 5 million cannot do this. Invested 500000$ during 5 years, but still have no sales: approaches to valuation.
