CH 3. Organizing and Financing a New Venture Entrepreneurial Finance
Progression through the venture life cycle
Forms of Business Organization
Choosing the form of organization: tax and other considerations
Intellectual Property Four forms of protection, which may be formally recorded as intangible assets for accounting purposes, are available: • Patents • Trade secrets • Trademarks • Copyrights There are four kinds of patents: • Utility; • Design; • Plant; • Business method. There are four types of marks: • Trademarks; • Service marks; • Collective marks; • Certification marks.
Seed, Startup, And First-round Financing Source
Business Angel Funding After personal financial resources and those of friends and family have been exhausted, capital-hungry new ventures frequently turn to business angels, “wealthy individuals who are willing to pour their money into fledgling companies in exchange for the excitement of launching a business and a share in any financial rewards. ” 32 It is important for entrepreneurs and founders to recognize the central role that angels play in new venture financing. For example, the Tech. Shop venture mentioned was started with $300, 000 from business angels, and the Green. Print venture was trying to raise an additional $250, 000 to $500, 000 from angels or other venture investors.