Class #7: The Art of Raising Capital

Monday, March 9

Finance Sources: The Art of Raising Capital

Reading: Mark Twain's "Roughing It", Chapter XLIV

Reading: Determining Success Factors of New Firms: “What are Firms? Evolution from Birth to Public Companies,” by University of Chicago Graduate School of Business professor Steven N. Kaplan, Per Strömberg of the Sweden Institute for Financial Research, and Berk A. Sensoy of the University of Chicago. http://www.chicagogsb.edu/capideas/dec05/1.aspx

Types of financing sources for start ups:

1. Angel investors: friends, family and professional angel investment networks:
review website: http://angelsoft.net/

2. Venture capital: professional investment for early stage business
review website: http://thefunded.com

3. Private equity

4. Small business loans: government sources, foundations and local banks
review website: http://www.sba.gov/

Assignment #7: Identify 3 sources of capital for your business plan. The sources should have a definite focus on the type of business you are envisioning. The name of your initial contact person should be included. Create powerpoint slide to document.