GETTING FINANCING FOR ENTREPRENEUR

Getting Financing for Entrepreneur



Table of Contents

Introduction3

Discussion3

Corporate venture capital3

Advantages and Disadvantages of Private venture capital4

Advantages and Disadvantages of Angel financing5

Advantages and Disadvantages of Debt Financing5

Conclusion6

Introduction

The study is related to get financing for the entrepreneur for health care ventures, for an entrepreneur, there are various ways to get themselves finance, for instance, the corporate venture capital, private equity, angel financing and the debt financing. All of these ways have distinct advantages and disadvantages; thus, for health care ventures an entrepreneur should work on its mode of financing so that the entrepreneur will not face any difficulty in financing.

Discussion

To create a company, the first thing an entrepreneur should do is be sick of being employed, receiving orders and meet schedules. Second, entrepreneur must have a spirit and an entrepreneurial profile, and finally, he must have the resources to finance entrepreneurial projects or ideas. The last part is perhaps the most difficult; it is not easy to get financial support for new projects. Banks do not have a policy or as a culture to support small entrepreneurs. When presenting a project to a bank, the first request is an endorsement which guarantees up to twice what the project requires investment requirements for an entrepreneur can not comply. Very few entrepreneurs take the investment of a heritage project, such as selling or mortgaging its assets, it is a high risk of becoming “the street” if the project fails. Fortunately, the state has realized that the best way to solve the unemployment problem, not give employment to every person, but give people the tools for this are self employed, or for that instead of being a job seeker is a generator of employment.

Corporate venture capital

Advantages

Corporate venture capital is a variant of the venture capital business. Unlike venture capital firms but are sought by corporate venture capital activities are not only financial returns, but also a contribution to achieving the strategic goals of the parent company should be done. Furthermore, the capital comes from the mother company, while venture capital firms typically collect external funds.

Corporate venture capital can be understood as a form of external corporate venturing, the strategic partnerships between large and small, usually referred to innovative companies, and a few forms of nurturing venture, spin-off of the venture and the joint venture includes New Style. The boundaries between these variants, however, are blurred. Internal corporate venturing refers contrast, the promotion of entrepreneurship and innovative ideas within the company (Ruhnka and Young, 2008).

Disadvantages

In addition to the target return pursue activities corporate venture capital strategic objectives. For example, companies learn new technologies, business models and / or create markets or by developing new lines of business demand for its own complementary products. Through the promotion of spin-off projects, the use of the existing companies, but does not support the core business matching technologies. The involvement in start-up companies can also be used to pre-empt competitors or to contribute to regional development. The option to receive a subsequent acquisition is limited to ...