Equity Sources of Financing

Equity Sources of Financing - E mpowering I magination A...

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Unformatted text preview: E mpowering I magination A pplying K nowledge E xploring Click to edit Master subtitle style David K. Hensley Executive Director and Clinical Professor Equity Capital: Angel Investing and Venture Capital What is the financing need? Working capital, fixed assets, equipment, acquisitions? Selecting the Right Capital Source Equity or Debt Financing? High potential returns growth, niche market, good management Equity Low risk, good cash flow, low leverage, good management Debt What stage of development is my company? Start Up high growth ->VC or Angel Rapid Growth > Investor Group, VC, Private Placement, Angels Established > Public Offering, Private Placement Selecting the Right Capital Source Source of Capital Increases Companys Net Worth, Borrowing Capacity, and Overall Financial Strength Enhance Credibility No Scheduled Repayment No Personal Liability Additional Help Available Advantages of Equity Financing Dilutes Ownership More Expensive than Debt Cannot Reverse the Transaction Give Up Control/Flexibility Difficult to Find Investors Disadvantages of Equity Financing Does the investor have experience in this market?...
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Equity Sources of Financing - E mpowering I magination A...

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