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- Title
Negotiating Venture Capital Financing.
- Authors
Tyebjee, Tyzoon T.; Bruno, Albert V.
- Abstract
The article discusses aspects of negotiating venture capital financing. Experts say there are milestones that must be met before the first round of venture capital financing. These include determining the "sweat equity" of a firm, when founders can prove they created additional value through their efforts and tangible accomplishments such as the completion of a business plan, development of a prototype, completion of first sale, and recruitment of key employees. The first and all subsequent rounds of investment up to and including the initial public offering (IPO) should be subject to similar review.
- Subjects
VENTURE capital; ECONOMIC value added (Corporations); BUSINESS valuation; FINANCING of new business enterprises; INVESTMENT analysis; BUSINESS models; DEBT-to-equity ratio; GOING public (Securities); EQUITY participations; BUSINESS incubators; FINANCE
- Publication
California Management Review, 1986, Vol 29, Issue 1, p45
- ISSN
0008-1256
- Publication type
Article
- DOI
10.2307/41165226