In case you haven’t noticed, it’s not the grandest time to start a business. But because the Guy and I are always dreaming up new business plans, this article on venture capital caught my eye. Reading things like this makes me realize how long my to-do list is to even be able to articulate what a business plan would look like. The basics of the capital structure are crucial, I’m learning. A few guiding principles I took away:
1) Ensure that you maintain control from investors with a controlling stake.
2) Even Institutional investors may demand a different CEO, even without a majority stake – so be careful about terms.
3) Start-up capital is precious. Do not deplete working-capital reserves until the venture is kicking off positive cash-flow.
In essence, watch your (company’s) back and your bottom line! I guess I’ll just tuck this one away for now….
Showing posts with label venture capital. Show all posts
Showing posts with label venture capital. Show all posts
Sunday, October 26, 2008
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