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Book chapter
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Reference no. BEP1937
Authors: Geoff Gregson
Chapter from: "Financing New Ventures: An Entrepreneur's Guide to Business Angel Investment"
Published by: Business Expert Press
Published in: 2014

Abstract

This chapter is excerpted from ‘Financing New Ventures: An Entrepreneur's Guide to Business Angel Investment'. This book provides guidance on what makes a new venture more likely to attract external financing, with an emphasis on business angel investment. The author incorporates the views of business angels, venture capitalists, entrepreneurs, and legal advisors; draws upon the latest academic thinking on financing new ventures; and provides comparisons between business angel and venture capital investing to further inform the reader. The concepts, principles, and guidelines presented in Financing New Ventures: An Entrepreneur's Guide to Business Angel Investment will be relevant to entrepreneurs and investors, business support agencies, business students, and others interested in raising external investment and in developing an 'investable' business. The book is organized into seven chapters, with Chapter 1 introducing key topics. Chapter 2 covers fundamental concepts of entrepreneurial venturing and finance. Chapter 3 discusses the market conditions from which 'investable' businesses emerge and provides guidelines for building an investable business case, which considers business models and plans. Chapter 4 describes the investment process and guides the reader through the stages leading to an investment deal. Chapter 5 examines deal negotiation between entrepreneur and investor and the common provisions contained in an investment deal agreement. Chapter 6 examines the relationship between entrepreneur and investor post investment and the different strategies by which investment returns are realized (eg, trade sale, merger, initial public offering). Chapter 7 discusses recent trends affecting how entrepreneurs raise finance that include strategic exits, 'super angels,' and the emergence of 'crowdfunding.'

About

Abstract

This chapter is excerpted from ‘Financing New Ventures: An Entrepreneur's Guide to Business Angel Investment'. This book provides guidance on what makes a new venture more likely to attract external financing, with an emphasis on business angel investment. The author incorporates the views of business angels, venture capitalists, entrepreneurs, and legal advisors; draws upon the latest academic thinking on financing new ventures; and provides comparisons between business angel and venture capital investing to further inform the reader. The concepts, principles, and guidelines presented in Financing New Ventures: An Entrepreneur's Guide to Business Angel Investment will be relevant to entrepreneurs and investors, business support agencies, business students, and others interested in raising external investment and in developing an 'investable' business. The book is organized into seven chapters, with Chapter 1 introducing key topics. Chapter 2 covers fundamental concepts of entrepreneurial venturing and finance. Chapter 3 discusses the market conditions from which 'investable' businesses emerge and provides guidelines for building an investable business case, which considers business models and plans. Chapter 4 describes the investment process and guides the reader through the stages leading to an investment deal. Chapter 5 examines deal negotiation between entrepreneur and investor and the common provisions contained in an investment deal agreement. Chapter 6 examines the relationship between entrepreneur and investor post investment and the different strategies by which investment returns are realized (eg, trade sale, merger, initial public offering). Chapter 7 discusses recent trends affecting how entrepreneurs raise finance that include strategic exits, 'super angels,' and the emergence of 'crowdfunding.'

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