Management and Organizational Studies 1023A/B Chapter Notes - Chapter 7: Venture Capital, Investment Banking, Cash Flow

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

Document Summary

How firms raise capital business at the lowest possible cost. To raise money, a firm can borrow, sell equity or both. How a firm actually raises capital depends on factors such as where the firm is in its life cycle, its expected cash flows and its risk characteristics. Most of the tie they are started by an entrepreneur who has a vision for a. Management"s goal is to raise the amount of money necessary to finance the product or a passionate belief in the concept"s viability. Bootstrapping the process by which many entrepreneurs raise (cid:498)seed(cid:499) operational through discussions with people that the entrepreneur trusts: generally low-budget affairs, with individuals who have a common. The entrepreneur often fleshes out his/her ideas and makes them money and obtain other resources necessary to start their business: comes from the old expression meaning to accomplish something on bond with the entrepreneur. The initial seed money usually comes from the entrepreneur or other founders.