Lecture 10

Lecture 10 - 1. I truly believe that entrepreneurs are at...

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1. I truly believe that entrepreneurs are at the heart of the nation’s economic recovery. They provide job growth, are the engine of creative enterprise and fuel growth in the GDP. When everyone else sees despair, entrepreneurs see hope. 2. So, why do entrepreneurs find it so difficult to raise money? Well, these are difficult times for anyone to raise money, but I believe that one of the biggest reasons entrepreneurs fail in their fundraising efforts is that they do not think like their investors. They are enamored with their venture and forget to look out for the interests of those that they would like to invest with them. Investors intuitively evaluate risk and entrepreneurs often fail to adequately address that risk for investors—or more importantly, how they will execute their business plan to replace those risks with increases in fundamental value. 3. Entrepreneurs may also limit their opportunities for raising capital by making mistakes in how they found the company in the first place or in how they raise their first investment capital. Venture capitalists are interested in companies that fit certain criteria in which they specialize.
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This note was uploaded on 04/04/2012 for the course ENT 302 taught by Professor Kozak during the Fall '11 term at Rutgers.

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