welcome to watchmojo.com in today’s business school bit we take a look at an
business school bit we take a look at an
business school bit we take a look at an alternative form of financing equity
alternative form of financing equity
alternative form of financing equity equity is different from debt in the
equity is different from debt in the
equity is different from debt in the sense that you are not borrowing money
sense that you are not borrowing money
sense that you are not borrowing money from anyone be at an organization or a
from anyone be at an organization or a
from anyone be at an organization or a person when you raise money through
person when you raise money through
person when you raise money through equity you are effectively selling a
equity you are effectively selling a
equity you are effectively selling a percentage of your company to an
percentage of your company to an
percentage of your company to an institution or a person there are four
institution or a person there are four
institution or a person there are four forms of equity financing the first one
forms of equity financing the first one
forms of equity financing the first one being seed seed investments can come
being seed seed investments can come
being seed seed investments can come from a person as it can come from a
from a person as it can come from a
from a person as it can come from a venture capitalist scene takes place at
venture capitalist scene takes place at
venture capitalist scene takes place at a very early stage as the name when it
a very early stage as the name when it
a very early stage as the name when it implies when you only have an idea and a
implies when you only have an idea and a
implies when you only have an idea and a vision the second stage is usually when
vision the second stage is usually when
vision the second stage is usually when VCS come in this is after the seed has
VCS come in this is after the seed has
VCS come in this is after the seed has already been invested and there is some
already been invested and there is some
already been invested and there is some kind of track record that the company
kind of track record that the company
kind of track record that the company has demonstrated the third stage is the
has demonstrated the third stage is the
has demonstrated the third stage is the bridge or mezzanine stage where the
bridge or mezzanine stage where the
bridge or mezzanine stage where the company has clearly demonstrated its
company has clearly demonstrated its
company has clearly demonstrated its leadership in the marketplace but is
leadership in the marketplace but is
leadership in the marketplace but is looking for additional funds to grow its
looking for additional funds to grow its
looking for additional funds to grow its business again AVC could be the same one
business again AVC could be the same one
business again AVC could be the same one that invests at the bridge and the
that invests at the bridge and the
that invests at the bridge and the fourth form of financing equity wise is
fourth form of financing equity wise is
fourth form of financing equity wise is actually in effect and exit strategy and
actually in effect and exit strategy and
actually in effect and exit strategy and that is the IPO or initial public
that is the IPO or initial public
that is the IPO or initial public offering where the original investors
offering where the original investors
offering where the original investors and founders of the company exchange the
and founders of the company exchange the
and founders of the company exchange the percentage of their holdings for money
percentage of their holdings for money
percentage of their holdings for money to the greater public we saw Google do
to the greater public we saw Google do
to the greater public we saw Google do this a couple years ago most of the
this a couple years ago most of the
this a couple years ago most of the successful companies around have had
successful companies around have had
successful companies around have had IPOs we mentioned exit strategies one
IPOs we mentioned exit strategies one
IPOs we mentioned exit strategies one exit strategy whereby investors get to
exit strategy whereby investors get to
exit strategy whereby investors get to gain some liquidity and get some money
gain some liquidity and get some money
gain some liquidity and get some money is an IPO the second form is simply when
is an IPO the second form is simply when
is an IPO the second form is simply when investors decide that they’d rather not
investors decide that they’d rather not
investors decide that they’d rather not do the IPO route and simply sell their
do the IPO route and simply sell their
do the IPO route and simply sell their company to another one we saw skype do
company to another one we saw skype do
company to another one we saw skype do this recently when they sold to ebay but
this recently when they sold to ebay but
this recently when they sold to ebay but before you think about exit strategies
before you think about exit strategies
before you think about exit strategies and I POS you need to get your business
and I POS you need to get your business
and I POS you need to get your business off the ground and your two choices of
off the ground and your two choices of
off the ground and your two choices of financing our debt or equity this this
financing our debt or equity this this
financing our debt or equity this this has been today’s business school bit on
has been today’s business school bit on
has been today’s business school bit on watchmojo.com
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