Beruflich Dokumente
Kultur Dokumente
13
Sources
Sources of
of Financing:
Financing:
Debt
Debt and
and Equity
Equity
Raising Capital
13 - 2
The Secrets to
Successful Financing
1. Choosing the right sources of capital is a
decision that will influence a company for
a lifetime.
2. The money is out there; the key is knowing
where to look.
3. Raising money takes time and effort.
4. Creativity counts. Entrepreneurs have to
be as creative in their searches for capital
as they are in developing their business
ideas.
Ch. 13: Sources of Financing: Debt & Equity
13 - 3
The Secrets to
Successful Financing
(continued)
13 - 4
Financing a Business
13 - 5
13 - 6
Equity Capital
13 - 7
Debt Capital
13 - 8
Personal savings
13 - 9
Personal Savings
13 - 10
Personal savings
Friends and family members
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Personal savings
Friends and family members
Angels
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Angels
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Angels
13 - 16
Angels
Average angel investment = $50,000.
Typical angel invests in 1 company per year,
and the average time to close a deal is 67
days.
52% of angels investments lose money, but
7% produce a return more than 10 times
their original investment.
Angels can be an excellent source of
patient money.
13 - 17
Angels
The Challenge: Finding Them!
Network
Look nearby: within a 50- to 100-mile
radius
Internet
13 - 18
www.unh.edu/cvr.
Ch. 13: Sources of Financing: Debt & Equity
13 - 19
Personal savings
Friends and family members
Angels
Partners
13 - 20
Partners
Diluting ownership
Sharing profits
13 - 21
Personal savings
Friends and family members
Angels
Partners
Venture capital companies
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FIGURE 13.2
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Competent management
Competitive edge
Growth industry
Intangibles factors
13 - 28
FIGURE 13.5
13 - 29
Personal savings
Friends and family members
Angels
Partners
Venture capital companies
Corporate venture capital
13 - 30
13 - 31
Personal savings
Friends and family members
Angels
Partners
Venture capital companies
Corporate venture capital
Public stock sale going public
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Going Public
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Data.
6 - 34
13 - 35
Advantages of
Going PublicIn addition to the text
13 - 36
Disadvantages of
Going PublicIn addition to the text
Loss of control
Loss of privacy
Filing expenses
Accountability to shareholders
Timing
13 - 37
Action
Week 1
Week 5
Distribute first draft of registration statement to IPO team and make revisions.
Week 6
Week 7
Week 8
File registration statement with the SEC. Begin preparing presentations for road
show to attract other investment bankers to the syndicate. Comply with Blue Sky
laws in states where offering will be sold.
Week 12 Receive comment letter on registration statement from SEC. Amend registration
statement to satisfy SEC comments.
Week 13 File amended registration statement with SEC. Prepare and distribute preliminary
Week 15 Receive approval for offering from SEC (unless further amendments are required).
Issuing company and lead underwriter agree on final offering price. Prepare, file,
and distribute final offering prospectus.
Week 16 Company and underwriter sign the final agreement. Underwriter issues stock,
collects the proceeds from the sale, and delivers proceeds to company.
13 - 38
13 - 39
Personal savings
Friends and family members
Angels
Partners
Venture capital companies
Corporate venture capital
Public stock sale going public
Simplified registrations and exemptions
13 - 40
Simplified Registrations
and Exemptions
Goal:
To give small companies easy
access to capital markets with
simplified registration
requirements
13 - 41
Simplified Registrations
and Exemptions
Regulation S-B
Regulation A
13 - 42
Commercial banks
Lenders of first resort for small
businesses
Average micro-business loan = $7,400
Average small business loan = $181,000
Study: 12% of entrepreneurs receive bank
loans to start their businesses.
13 - 43
Short-term loans
Commercial Loans
Lines of Credit
Floor planning
Installment Loans
Term Loans
13 - 44
1.
2.
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13 - 47
Asset-Based Lenders
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Asset-Based Borrowing
Inventory
financing
13 - 49
13 - 50
Credit unions
Private placements
Small Business Investment
Companies (SBIC)
Small Business Lending
Companies (SBLCs)
13 - 51
13 - 52
CommunityExpress Program
13 - 53
13 - 54
CommunityExpress Program
Microloan Program
13 - 55
Disaster Loans
13 - 56
13 - 57
Leasing
assets rather than buying them
Credit cards
13 - 58
FIGURE 13.8
13 - 59
Conclusion
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