Cover your equity refers topreserving as much of your equity as you can for as long as youcan.
Angels are wealthy individuals whoinvest in startup and emerging businesses through the informalmarket.
Venture capital are privateinvestment firms that supply capital and other resources toentrepreneurs in businesses with high growth potential in hopes ofachieving a high rate of return on investment fund.
Valuationof a company is the valuethat capital markets place on the venture (number of sharesoutstanding times share price.)
New Venture Creation 8th Edition 2008 Olympic Medals. 0 Comments At the 1964 Tokyo Olympics, the Japanese women's volleyball won the gold medal, which in.
Due diligence is the process bywhich the potential investor verifies the capabilities of theventure, the backgrounds of the management team, and technicalspecifications of the product.
IPOstands for initial publicoffering, the process by which a company raises capital throughfederally registered and underwritten sales of the company’sshares.
Mezzanine financing refers tocapital that is between senior debt financing and common stock,usually subordinated debt with an equity element.
SBIC stands for Small BusinessInvestment Companies, firms licensed by the SBA to provide debtcapital to small emerging enterprises in exchange for equity.
Private placements are analternative to going public; the venture sells shares of its stockto a small group of investors rather than to the public as a publicoffering.
Regulation D was developed throughthe cooperation of the SEC and the state securities associations toprovide a uniform exemption from registration for smallissuers.
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Rule 504: Issuers that are notsubject to the reporting obligations of the Securities Exchange Actand that are not investment companies may sell up to $1 millionworth of securities over a 12-month period to an unlimited numberof investors.
Rule 505: Issuers that are notinvestment companies may sell up to $5 million worth of securitiesover a 12-month period to no more than 35 nonaccredited purchasersand to an unlimited number of accredited investors.
Rule 506: Issuers may sell anunlimited number of securities to no more than 35 unaccredited butsophisticated purchasers, and to an unlimited number of accreditedpurchasers.
New Venture Creation 8th Edition 2008 Honda Accord
ESOP stands for employee stockownership plans in which the employees become investors in thecompany, thereby creating an internal source of funding.