Assignment 1: Reflection



Assignment 1: Reflection

Introduction

U.S economy is derived by invention and innovation. What's more, they have a powerful grip on the nation's collective imagination. Companies have to make certain decisions for the purpose of their growth and expansion. Investment decisions hold an important and strategic position in the development of a business. From seed capital to launching an IPO it is necessary to make sure that these options are in accordance with the business needs and are also related to the current business and economic environment. Some of the important terminologies and concepts upon which an entrepreneurship ventures are based, they are as follows:

Start up Finance

Angel Financing

Venture capital

Finance through banks and commercial loans.

Financing through Initial Public Offerings (IPO).

As finance is the life blood of an organization. Therefore it is the mandatory requirement for any business. Initially companies need to have extensive amount of capital with them so as to fetch the future requirements.

Start up Finance

Each and every business needs some funds to make an initial step. These funds which are gathered from mostly family members, friends and other close relatives are used in business startups.

Angel Financing

An angel investor (known as a business angel in Europe or simply "Angel") is an individual who provides capital prosperous for a start-up , usually in exchange for equity . Angels typically invest their own funds, unlike the venture capital entities (or venture capitalists), who manage money professionally through a third fund. An increasing number of angel investors are organizing themselves into networks, groups or clubs to share angels unite their efforts and capital investment. Angelic Capital bridges the gap in funding a nascent business. Dotcom companies often use venture capital to start, because they need a lot of money for advertising, equipment and employees. They need advertising to attract visitors, and need equipment and staff to make up the physical environment.

An Angel Investor-is usually a (former) businessman / entrepreneur or executive who has trodden a successful career, accumulating enough resources to allocate a portion (usually between 5% to 10% of its assets) to invest in new businesses and how to apply his experience to support the company. Important to note that unlike what many think, Angel Investor-not normally holds great fortunes, as the angel investment for these would be too small to be administered.

Venture Capital

To date, very few domestic firms and entrepreneurs engage in attracting venture capital. According to opinion polls, about venture investing is only a small representation of entrepreneurs. Has an even smaller part of the objective and accurate information on the mechanisms of venture capital investment. They need advertising to attract visitors, and need equipment and staff to make up the physical environment. Venture capital is the temporary provision of third party resources equity of an enterprise to optimize business opportunities and increase its value, thus providing solutions for business projects, sharing the risk and return where the investor capitalist seeks a close and medium-term with the original ...