Abstract

ABSTRACTGiven the high visibility of venture capital and private equity (VC/PE) in business news, entrepreneurs may be misled on the role and relative size of this financing model. In reality however, VC/PE is quite difficult to obtain, particularly for young entrepreneurs. With this in mind, I assess seven popular models for financing that may be of interest to entrepreneurial students. These seven models include: self-funding/bootstrapping; friends, family, and colleagues; banks; accelerators; angel investors; peer-to-peer (P2P) lending; and crowdfunding. Each model is summarized and evaluated for their advantages and disadvantages. A discussion of relevant resources for each model is also provided.

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