Financial resources for the new venture

Published on November 24, 2011 Reviewed on November 30, 2016   31 min

Other Talks in the Series: Entrepreneurship

Hello and welcome to Financial Resources for the New Venture. My name is Gary Dushnitsky, and I'm an Associate Professor of Strategy and Entrepreneurship at the London Business School, and an Academic Director of the Institute of Innovation and Entrepreneurship. Over the past decade, I've been studying, teaching, and consulting to new ventures in Europe and the US, looking into establishing financial resources for new ventures.
The purpose of this presentation is fourfold. First, to map out the financing alternatives available to new ventures. Second, to understand the underlying challenges facing investors and entrepreneurs alike. Third, to discuss common mechanism and key characteristics of the aforementioned challenges. Finally, to understand what attracts investors and how might that differ for different investor groups.
Consider the various external sources for new venture financing. One productive way to think of the issue is to look at the stage of the venture at the time of fundraising, which is denoted by the X-axis, as well as the required investment amount, which is denoted by the Y-axis. We will expand on each of these dimensions in the following slides. It is important to note that what follows is for illustration purpose only and is not meant to be interpreted to scale. Funding alternatives are diverse in terms of the sources of capital, investment amounts, stage targeted, and so on. We'll expand on each of the alternatives later. But first, let us turn to understand the two dimensions along the axes.