Funding - Determine Funding Needs Business Plan Preparation...

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Determine Funding Needs Business Plan Preparation College of Business Administration University of Central Florida
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How much money do we need? Review cash flow statements Find periods with negative cash balances Schedule cash infusion(s) to eliminate negative balances Add safety cushion (~10-25%) Develop funding strategy
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Sources of Funds Equity funding Debt Non-traditional
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Equity Funding Private Placement Friends, family, and fools Well to-do investors Angels “Professional” investors working alone Venture Capitalists Most “expensive” form of financing Advantages and disadvantages
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VC’s Ideal of an Entrepreneur Qualified in “hot” area Technically feasible and likely Compelling story, presentable Recognizes need for speed to IPO Good reputation, references Understands need for team Diligent, but flexible Gets along with investors Understands and accepts VC deals Is sought after by many VC’s Realistic expectations
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Debt Credit cards Bank loans Typically want to make secured loans
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Funding - Determine Funding Needs Business Plan Preparation...

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