to page content
to site navigation
Explore the Entrepreneurship.org Resource Center to find resources. Designed with entrepreneurs in mind, our resource center allows you to find materials to grow great ideas.
Venture capitalists play a critical funding role, as entrepreneurial ventures move into the big leagues, but the price these investors extract is often too high. Entrepreneurs should consider the relationship analogous to marrying a mail-order bride and proceed accordingly, according to this comprehensive and entertaining article by two women who co-founded a software company. Tips include advising company owners to build trust with VCs and, until that is established, dealing with them in a way that allows for "a reasonable balance of power."
Any entrepreneur who hopes to raise capital from individual investors, so-called "angels," should be properly prepared with a presentation, business plan, list of potential angels, and outline of the opportunity his or her new venture affords. The author explains that it's also important to avoid making such mistakes as allowing investors to have too large a stake in the enterprise. That could cause problems should the company fail, he writes, in an article filled with specific tips for dealing with these financiers.
The founder of a software development business had already agreed to be acquired by one company and was ready to sign the documents. Then another company came calling with a better offer. Loyal employees and a working partnership with the buyer turned out to be the crucial assets constituting the value of the business. The author concludes that you need to shop around and negotiate to find out what your company is really worth.
Founding an Internet company was a logical step for this college-educated rap fan with cable-industry marketing experience. He's a man with a mission: equipping minority communities with computer technology and online access so they can participate fully in the new economy. Commercial and community partnerships enable him to grow the business and carry the message.
Valuation may be done for a wide range of reasons and is not an exact science, whatever method you use. To understand how a company's fair market value is reached, start here.
Whatever formula you use to calculate the market value of a business--assets, performance or other multiples--a good starting point may be all it provides. Here's why--along with the other factors that count.
When a company needs to raise capital, it can issue stocks, warrants or options, bonds, notes or debentures. Know the functions and advantages of each before you choose.
Issuing shares privately is a viable way for small and growing businesses to raise capital, exempt from many registration and reporting requirements. Here are the rules you need to know.
The legal documents included in a Private Placement Memorandum give potential investors necessary information about your company, the terms of the securities being offered and the risks of buying and holding them. Here's how to put it together.
Venture capital firms consider key variables in your business plan before committing capital to the project. Prepare your management team to answer the questions discussed here. This article also explains the securities and documents that result from venture capital negotiations.
Want to get connected? Sign up to receive regular news, polls and updates from The Kauffman Foundation.
A robust online curriculum for entrepreneurs.
Explore Founders School >
A network of U.S. cities facilitating a weekly entrepreneur education program. Go to 1 Million Cups >
Whether you are starting or growing a company, FastTrac will help you live your dream at each stage.
Get started with FastTrac >