What are various sources of equity investment?

Public stock: Raising funds by slleing stock of the company though an IPO. Sells on any stock market such as NASDAQ, S&P 500, Eurostoxx..

Private Equity: Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity. Capital for private equity is raised from retail and institutional investors, and can be used to fund new technologies, expand working capital within an owned company, make acquisitions, or to strengthen a balance sheet. Some of the Private equity are:

• venture capital
• leveraged buyout
• growth capital
• special situations
• mezzanine capital.

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

• Scrutinize your 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

What are the differences between a single-hit and a home-run business?

A single-hit business is a company that relies on one product, and the company is only focused on it. So this companies use to last shorter and have big growing rates. The Home run business is a kind of business more diversified in terms of products, with a broader options. So they do not rely in just one product but in the sum of them.

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

Characters: Including reliability and honesty.

Cash Flow: Enough to cover the debt.

Collateral: In case the company does not reach their proposed obligation so they can cover part of the loan.

Contribution: By the entrepreneur towards the funding requirement.