Creating a Winning E-Business Second Edition Getting Your E-Business Off the Ground Chapter 4
Creating a Winning E-Business Second Edition Getting Your E-Business Off The Ground Chapter 4
Learning Objectives Describe the financing issues associated with an e-business startup Discuss the role of informal investors in an e-business startup Identify issues important to venture capital investors Creating a Winning E-Business Second Edition Chapter 4
Creating a Winning E-Business Second Edition, Chapter 4 2 Learning Objectives ▪ Describe the financing issues associated with an e-business startup ▪ Discuss the role of informal investors in an e-business startup ▪ Identify issues important to venture capital investors
Learning Objectives (continued) Pitch your e-business idea to investors Discuss the advantages and disadvantages of business incubators Creating a Winning E-Business Second Edition Chapter 4
Creating a Winning E-Business Second Edition, Chapter 4 3 Learning Objectives (continued) ▪ Pitch your e-business idea to investors ▪ Discuss the advantages and disadvantages of business incubators
Starting a new e-business building a Web site prototype, conducting market research renting offIce space, buying or leasing equipment hiring employees -that require funds Creating a Winning E-Business Second Edition Chapter 4
Creating a Winning E-Business Second Edition, Chapter 4 4 ▪ Starting a new e-business : – building a Web site prototype, – conducting market research, – renting office space, – buying or leasing equipment, – hiring employees —that require funds
Startup Financing Bootstrapping Self-funding Sweat equity Invest your own time, effort, money, even re-mortgage and personal loan Finding unique and inventive ways to acquire resources without borrowing money formal investors Friends Family members Angel investors Creating a Winning E-Business Second Edition Chapter 4
Creating a Winning E-Business Second Edition, Chapter 4 5 Startup Financing ▪ Bootstrapping – Self-funding – Sweat equity • Invest your own time, effort, money, even re-mortgage and personal loan – Finding unique and inventive ways to acquire resources without borrowing money ▪ Informal investors – Friends – Family members – Angel investors