Rising capital.

Question 1

Having started a new technology venture, short-term cash is vital to the business. In addition to my 20% equity, I would need to find means to fund the 80% cash. A bank overdraft would be the first source of cash to consider, and the friends and family.A bank overdraft is a better source because one does not have to deal with individuals who might not berakis, 2010). Since the innovation is very likely to have rapid growth because of the high-tech innovation involved, I would consider looking for some funding from venture capitalists.

Question 2

An angle investor should consider whether the business founder can be trusted, by ensuring that his business plan is solid (Bygrave & Zacharakis, 2010). I would, therefore, scrutinize the business plan to ensure that it demonstrates integrity and ethics. Without these, making any investment would be a risk. I would also consider what the business portrays about its IRR. Any angle investor has a time horizon during which he expects returns, in most cases 15-25% IRR in 5-7 years. Most founders might give a very high internal rate of return to attract as many investors as possible. I would ensure that the expected returns do not differ with those of similar industries (Bygrave & Zacharakis, 2010). The business plan should portray financial confidence. It should show the risks that are likely to arise as one invests in the business, and promise theinvestors that they are guaranteed of getting their money back, in case of failure or success of the business.

Question 3

In order to mitigate the risk of running out of capital as the business proceeds, I would ensure that I develop a fundable business plan at the start. The business idea should be feasible for the financiers to have confidence in my business and fund it. I would also show commitment to the business to gain confidence of the business financiers, and the business will be assured a flow of capital. I would include a stellar management team, have attractive market characteristics and powerful product value to attract as many investors as possible in the business.

Part 2- Valuation

Question 4

Net asset value is one of the techniques used in the valuation of the business. It is suitable for businesses with heavy investments and data for doing this valuation is readily available. It also allows for adjustments n estimating fair market value. However, it does not consider future changes in sales and the balance sheet may not reflect all assets. Capitalization of earning method is simplified and arrives at an easily determined value. However, it might overlook the value of assets, both tangible and intangible.

Question 5

To win in valuation negotiations, entrepreneurs should prepare adequately. They should be open-minded to gather intelligence that can help them win a negotiation (Bygrave & Zacharakis, 2010). They should also understand the financial position of the business, to avoid being tricked by the experienced investors who could tell them of their version of the world. They should, therefore, obtain regular updates on the funding position from the investors.


Bygrave, W. & Zacharakis, A. (2010). Entrepreneurship, 2nd Edition. Hoboken, NJ: John Willey & Sons.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more