1. What are various sources of equity investment?

Super-angels, who invest their own funds rather than managing money for others. Invest higher amounts compared to angels. Public stock, either by holding shares in a publicly traded company or by selling some of your company stock to raise further money. Private equity that includes venture capital, leverage buyout, growth capital, distressed or special situations and mezzanine capital.

2.  What guidelines should entrepreneurs follow when they are selecting a venture capitalist?

• Scrutinize you business with a critical eye
• Beef up management
• Keep a high profile so the VCs will visit
• Target the search
• Keep a lookout
• Investigate possible venture partners

3. What are the different between a single hit and a home-run business?

A home-run business requires investing more and more capital over a long period and the investment returns are poor. Whereas a single hit,  you build “essential” assets for an early sale to a larger company in two or three years.

5. What are the four key factors that a banker seeks before providing a corporate?

• Character which includes such traits as talent, reliability, and honesty.
• Cash flow to cover debt service must be available throughout the term of the obligation.
• Collateral to support at least part of the loan should the company be unable to meet its obligations.
• Contribution by the entrepreneur towards the funding requirement.