Equity Financing

1.What are various sources of equity investment?

a. super angels – emerging group of investors that sit between conventional private angel investors and the venture         capitalists.

b. public stock – selling shares of the company

c. private equity – venture capital, leverage buyout, growth capital, distressed or special situation, mezzanine capital

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

a. Scrutinize your business with a critical eye

b. Beef up management

c. Keep a high profile so the VCs will visit

d. target the search

e. keep a lookout

f. investigate possible venture partners

5. What are the difference between a single-hit and a home-run business?

Single hit – no sustainable product / service / business model

Home run – sustainable business that can run long time

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

a. character – which includes such traits as talent, reliability and honesty

b. cash flow – to cover debt service must be available throughout the term of obligation

c. collateral – to support at least part of the loan should the company be unable to meet its obligations

d. contribution – by the entrepreneur towards the funding requirement