This document introduces entrepreneurial finance and new venture development. It discusses that entrepreneurship involves perceiving opportunities, developing strategies, implementing plans, and harvesting rewards. New ventures progress through stages of opportunity research, start-up, early growth, rapid growth, and exit. Financing needs evolve as ventures reach milestones marking their development. The business plan communicates a venture's strategic goals and assumptions to attract financing as it advances through stages of growth.
Irish Technology Capital-European Technology Venture Fund - John Hartnett - S...Burton Lee
Presentation by John Hartnett, Irish Technology Capital, about the new venture Fund that he is raising in Ireland and Silicon Valley, aimed at the Irish and European hitech startups marketplace. Stanford Engineering, January 4 2010. Program Director and Course Instructor Dr. Burton Lee. Homepage: http://me421.stanford.edu
Startany.com. Remote Acceleration Program.
---------------------------------------------------------------
The Founder’s Guide to Early-Stage Valuation
Presented by Stephen R. Poland, co-founder 1x1 Media.
For many early-stage entrepreneurs assigning a valuation to your startup is one of the more intimidating tasks encountered during the fundraising quest. Based on the popular Founders’ Pocket Guide: Startup Valuation, this webinar provides a quick reference to all of the key topics around early-stage startup valuation and provides step-by- step examples for several valuation methods.
This webinar helps startup founders learn:
What a startup valuation is and when you need to start worrying about it.
Key terms and definitions associated with valuation, such as pre-money, post-money, and dilution.
How investors view the valuation task and what their expectations are for early-stage companies.
How the valuation fits with your target raise amount and resulting founder equity ownership.
How to do the simple math for calculating valuation percentages.
How to estimate your company valuation using several accepted methods.
Stephen R. Poland
Stephen R. Poland has worked with hundreds of startups and entrepreneurs, mentoring them on startup mechanics, funding plans, pitch decks, financial models, and due diligence documentation for the angel funding process.
Steve brings more than 20 years' experience in startups and entrepreneurship to his career. Leveraging leadership roles with the Walt Disney Company, MacMillan Publishing, and Bertelsmann, Steve co-founded startups in the digital music and on-demand media manufacturing sectors, as well an early days anti-virus product.
Along with being co-founder of 1x1 Media, Steve works as a venture growth advisor in Western North Carolina.
Irish Technology Capital-European Technology Venture Fund - John Hartnett - S...Burton Lee
Presentation by John Hartnett, Irish Technology Capital, about the new venture Fund that he is raising in Ireland and Silicon Valley, aimed at the Irish and European hitech startups marketplace. Stanford Engineering, January 4 2010. Program Director and Course Instructor Dr. Burton Lee. Homepage: http://me421.stanford.edu
Startany.com. Remote Acceleration Program.
---------------------------------------------------------------
The Founder’s Guide to Early-Stage Valuation
Presented by Stephen R. Poland, co-founder 1x1 Media.
For many early-stage entrepreneurs assigning a valuation to your startup is one of the more intimidating tasks encountered during the fundraising quest. Based on the popular Founders’ Pocket Guide: Startup Valuation, this webinar provides a quick reference to all of the key topics around early-stage startup valuation and provides step-by- step examples for several valuation methods.
This webinar helps startup founders learn:
What a startup valuation is and when you need to start worrying about it.
Key terms and definitions associated with valuation, such as pre-money, post-money, and dilution.
How investors view the valuation task and what their expectations are for early-stage companies.
How the valuation fits with your target raise amount and resulting founder equity ownership.
How to do the simple math for calculating valuation percentages.
How to estimate your company valuation using several accepted methods.
Stephen R. Poland
Stephen R. Poland has worked with hundreds of startups and entrepreneurs, mentoring them on startup mechanics, funding plans, pitch decks, financial models, and due diligence documentation for the angel funding process.
Steve brings more than 20 years' experience in startups and entrepreneurship to his career. Leveraging leadership roles with the Walt Disney Company, MacMillan Publishing, and Bertelsmann, Steve co-founded startups in the digital music and on-demand media manufacturing sectors, as well an early days anti-virus product.
Along with being co-founder of 1x1 Media, Steve works as a venture growth advisor in Western North Carolina.
Entrepreneurs need to put a value on their start-ups in order to raise money, and investors need to put a value on their investments to ensure an adequate return on investment. No negotiating item between entrepreneur and investor creates a wider gulf than this one. The two parties may agree on every other point but will have diametrically opposing views on what the start-up is worth and how much equity the investor should receive in exchange for his capital.
Valuation is challenging for a start-up. Since young businesses take time to become profitable, the trick of valuing start-ups is to focus on the future. If you want your start-up to be a masterpiece, you’ll need to use the right side of your brain as much as your left to determine value.
Is business valuation art or science? Is it possible to place a credible valuation on a Start-up? What is Pre-money valuation? What is Post-money valuation? How much your company worth? Are you really worth anything until you’re profitable? How to value your start-up for a VC? What are the Start-up valuation methods?
Many investors mistakenly base the success of their portfolios on returns alone. Few consider the risk that they took to achieve those returns. Since the 1960s, investors have known how to quantify and measure risk with the variability of returns, but no single measure actually looked at both risk and return together. Today, we have three sets of performance measurement tools to assist us with our portfolio evaluations. The Treynor, Sharpe and Jensen ratios combine risk and return performance into a single value, but each is slightly different. Which one is best for you? Why should you care? Let's find out.
Portfolio performance measures should be a key aspect of the investment decision process. These tools provide the necessary information for investors to assess how effectively their money has been invested (or may be invested). Remember, portfolio returns are only part of the story. Without evaluating risk-adjusted returns, an investor cannot possibly see the whole investment picture, which may inadvertently lead to clouded investment decisions.
Finance and cash management for entrepreneursJorge Saguinsin
This is a refresher for an entrepreneur who lacks complete knowledge and confidence in financial and cash management. These are mostly stock and common knowledge
Angel investors and
entrepreneurs. Its objective would be to help lucrative, reasonable and pleasant relationships
between entrepreneurs and angels.
After being an energetic angel investor for around fifteen decades, many investors recognized
that lots of the conversations they were involved with were practically just like types they
would had often before.
How do you value a pre-revenue startup?
This is an introduction to some of the methods that are typically used to value a startup, detailing what is important to establish before carrying out a valuation and how it relates to the chosen fundraising strategy and your local market.
To introduce strategic design for an entrepreneurial venture
To discuss some of the reasons why entrepreneurs do not carry out strategic planning
To outline entrepreneurial strategy and some benefits of strategic planning
To examine the transition from an entrepreneurial style to a managerial approach
To discuss the five stages of a typical venture life cycle
To identify key management issues occurring during the growth stages
To introduce the steps useful for breaking through the growth wall
To identify the unique managerial concerns with a growth business
To elaborate the concept of entrepreneurial leadership
To outline ways to incorporate sustainability into business strategy
Entrepreneurs need to put a value on their start-ups in order to raise money, and investors need to put a value on their investments to ensure an adequate return on investment. No negotiating item between entrepreneur and investor creates a wider gulf than this one. The two parties may agree on every other point but will have diametrically opposing views on what the start-up is worth and how much equity the investor should receive in exchange for his capital.
Valuation is challenging for a start-up. Since young businesses take time to become profitable, the trick of valuing start-ups is to focus on the future. If you want your start-up to be a masterpiece, you’ll need to use the right side of your brain as much as your left to determine value.
Is business valuation art or science? Is it possible to place a credible valuation on a Start-up? What is Pre-money valuation? What is Post-money valuation? How much your company worth? Are you really worth anything until you’re profitable? How to value your start-up for a VC? What are the Start-up valuation methods?
Many investors mistakenly base the success of their portfolios on returns alone. Few consider the risk that they took to achieve those returns. Since the 1960s, investors have known how to quantify and measure risk with the variability of returns, but no single measure actually looked at both risk and return together. Today, we have three sets of performance measurement tools to assist us with our portfolio evaluations. The Treynor, Sharpe and Jensen ratios combine risk and return performance into a single value, but each is slightly different. Which one is best for you? Why should you care? Let's find out.
Portfolio performance measures should be a key aspect of the investment decision process. These tools provide the necessary information for investors to assess how effectively their money has been invested (or may be invested). Remember, portfolio returns are only part of the story. Without evaluating risk-adjusted returns, an investor cannot possibly see the whole investment picture, which may inadvertently lead to clouded investment decisions.
Finance and cash management for entrepreneursJorge Saguinsin
This is a refresher for an entrepreneur who lacks complete knowledge and confidence in financial and cash management. These are mostly stock and common knowledge
Angel investors and
entrepreneurs. Its objective would be to help lucrative, reasonable and pleasant relationships
between entrepreneurs and angels.
After being an energetic angel investor for around fifteen decades, many investors recognized
that lots of the conversations they were involved with were practically just like types they
would had often before.
How do you value a pre-revenue startup?
This is an introduction to some of the methods that are typically used to value a startup, detailing what is important to establish before carrying out a valuation and how it relates to the chosen fundraising strategy and your local market.
To introduce strategic design for an entrepreneurial venture
To discuss some of the reasons why entrepreneurs do not carry out strategic planning
To outline entrepreneurial strategy and some benefits of strategic planning
To examine the transition from an entrepreneurial style to a managerial approach
To discuss the five stages of a typical venture life cycle
To identify key management issues occurring during the growth stages
To introduce the steps useful for breaking through the growth wall
To identify the unique managerial concerns with a growth business
To elaborate the concept of entrepreneurial leadership
To outline ways to incorporate sustainability into business strategy
From defensive to offensive growth during the pandemic generated by COVID-19Elena Badea
Mitigating the highest risks is crucial from an operational point of view as well as from a cash flow point of view. This is a continuous effort. Short-term liquidity and solvency actions are essential.
From defensive to offensive growth during the pandemic generated by COVID-19Constantin Magdalina
It is now the time to prepare for the next phase. Industries that have been in the status quo for a decade are now wide open to transformation. Companies that move quickly and decisively will win.
Building a Successful Business - Key Demand Drivers, Trends and Best Practice...SSCG Consulting
It's a good time to be involved in the start-up scene. More funding available than ever before, capacity building support and content on how to start your own business are easily accessible, and community-driven coworking and innovation hubs are popping up everywhere.
Despite the rising popularity of entrepreneurship, starting up a venture and culture brings its own unique set of challenges and problems in a rapidly changing and complex global landscape that its leaders must overcome.
Sources of Funds, Venture Capital System, Designing a Funding Strategy, What investors look in a pitch funding, Current funding options available in GLobal Market
Welcome to Investment & by Challenge Advisory, our approach to supporting technology companies in securing strategic investment.
For further details please feel free to reach out to us for a consultation.
Discover how entrepreneurship is changing in the recent times and the fundamentals of starting your own venture from the scratch. Your Financing options, making your business plan , preparing your pitch deck and other challenges and mistakes to be avoided as you take the course of entrepreneurship.
Introduction to entrepreneurship: What are Entrepreneurship Traits, Define Entrepreneur decision making process
What is the Role of entrepreneurship in economy
Analyze Concept of start up and forms of ownership
Role of Women entrepreneur and challenges
eshipModule Dekh bhai me bevkuf nhi 15 din se PPT gungan sun rhi.. Bhejna h t...prashansayadav1274
Dekh bhai me bevkuf nhi 15 din se PPT gungan sun rhi.. Bhejna h toh 12pm tak bhej dena.. Warna presentation khud hi de de.. You've wasted my time.. Mene apni self respect nhi dekhi teri aur Meri frndship ke liye.. Par ab I can't tolerate it anymoreDekh bhai me bevkuf nhi 15 din se PPT gungan sun rhi.. Bhejna h toh 12pm tak bhej dena.. Warna presentation khud hi de de.. You've wasted my time.. Mene apni self respect nhi dekhi teri aur Meri frndship ke liye.. Par ab I can't tolerate it anymoreAisa lag rha jaise self respect kho gyi h meriExplore the significance of mobile marketing strategies in reaching and engaging with today’s smartphone-dependent consumers.Manan Garg & group topic
implement a multi-channel digital marketing strategy by taking a hypothetical brand or product . What channels were included, and how were they integrated to maximize impact.
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Explain the concept of pay-per-click (PPC) advertising and its role in driving targeted traffic to websites with practical visualisation .
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Discuss the role of influencer marketing in today’s digital landscape and its impact on brand awareness and customer trust. Give example of any 5 influencers from different segments .
Prashansa
Explore the significance of mobile marketing strategies in reaching and engaging with today’s smartphone-dependent consumers.
Sanskar & group
How do emerging technologies such as artificial intelligence and virtual reality impact the future of digital marketing, and what opportunities do they present for businesses. Give example of any field
Pulkit & group
What are some best practices for optimizing conversion rates on e-commerce websites, and how do they contribute to overall sales growth?
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What are the latest trends in content marketing, and how can businesses adapt their strategies to stay relevant?
Give example of 5 best content creators from real life world
Akhilesh & group
How can businesses leverage social media platforms for effective digital marketing campaigns. Present with the help of real life world examples .
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What are some real-life examples of businesses ( 5) effectively leveraging user-generated content in their digital marketing efforts?
Yogita & group
Explain the concept of off page SEO & on page SEO with their working
Udiyeta & group
Explain how you measure the ROI (Return on Investment) of digital marketing campaigns in practice. What metrics do you track, and how do you analyze the data to assess performance? Explain with the help of real life expame or hypothetical performance .Sir nidh
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
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This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
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2. Learning Objectives
• Describe the evolution of thinking about entrepreneurship
• Recognize that studying entrepreneurial finance leads to
better investment and financing decisions
• Understand why maximizing value for the entrepreneur is
central to the study of entrepreneurial finance
• Describe the process of new venture formation from
inception to harvesting
• Distinguish the various stages of new venture development
• Understand the value of tying new venture financing to
milestones that mark a venture’s progress
• Understand how the business plan is related to strategic
planning and implementation
2
3. Entrepreneurship and the Entrepreneur
• What is an Entrepreneur?
– R. Cantillon – bearer of risk in provision of capital
– J. B. Say – shifter of resources to higher productivity
– J. Schumpeter – innovation as disturbing status quo
– Knight – directs resources in the presence of uncertainty
– P. Drucker – creating something new, transmuting value
• Modern view
– pursuit of opportunities to combine and redeploy
resources without regard to current ownership or control
of the resources
3
4. Entrepreneurship is Multidimensional
• The entrepreneur must:
1. perceive an opportunity to create value by
redeploying society’s resources
2. devise a strategy for marshaling control of
necessary resources
3. implement a plan of action to bring about the
change
4. harvest the rewards that accrue from the
innovation
4
6. New Venture Survival Rates
• 50% of new ventures survive at least four
years and 30% at least ten years
• “High growth” firms have a better survival
record; 72% survive at least four years
• One-third of non-surviving entrepreneurs still
considered their venture a success
6
7. Economic Downturns and
Entrepreneurship
• Benefits of starting a venture in a downturn
– lower opportunity cost
– competition may be less intense
– easy to hire high quality employees
• Famous companies started during economic
downturns
7
8. Globalization of Entrepreneurship
• Entrepreneurship now comes from all over the
world and is driven by
– increased competition for ideas and for financing
– technological advances: communications and
computers
– government policies and subsidies
8
10. Types of Entrepreneurship
• Replicative versus innovative
• Opportunity-based versus necessity-based
• Corporate Venturing
• Social Venturing
10
11. Replicative vs. Innovative Entrepreneur
• Replicative entrepreneurs function as efficient
coordinators of resources
– start and maintain businesses that mimic
predecessors
– provide more of existing goods and services
• Innovative entrepreneurship reshapes
industries and has the potential to add huge
value to economies
– e.g. Google, Intel, Facebook, and e-Bay
11
12. Necessity-based vs. Opportunity-based
Entrepreneurship
• Necessity-based entrepreneurs start businesses due
to a lack of alternatives
– small, low-capital ventures
– almost always replicative
– common in emerging economies
• Opportunity-based entrepreneurs are motivated by
the idea
– accounts for virtually all innovative entrepreneurship
– most frequently found in developed economies
12
14. Corporate Venturing
• Corporate venturing is common for projects
requiring
– large and complex research teams
– generic testing equipment
– lengthy development times
• Incentives to encourage entrepreneurship are
difficult to implement in large organizations
– motivating people to work on the right projects
– rewarding success
– perceived inequities
14
15. Social Venturing
• Primary objective of the venture’s product or
service is to address a social issue
• Financial returns are traded off against social
objectives
• Includes efforts by non-profit entities to
create for-profit subsidiaries, e.g. museum
shops
• Recent trend in “green-tech” or “clean-tech”
15
16. The Finance Paradigm
1. More of a good is preferred to less.
2. Present wealth is preferred to future wealth.
3. Safe assets are preferred to risky assets.
We use these guidelines to make:
– investment decisions, i.e., what assets to acquire
– financing decisions, i.e., the types and mix of
funding sources
16
17. The Importance of Real Options
• A real option is a right, but not an obligation,
to undertake a decision about a non-financial
(i.e., “real”) asset.
• Examples: abandon a poorly performing
venture or expand a venture doing well
• Values of real options depend importantly on
the degree of uncertainty surrounding the
investment.
17
18. Objective: Maximizing Value
for the Entrepreneur
• Corporate managers often focus on
maximizing shareholder value
• We focus decision making on maximizing the
value for the entrepreneur
• May be different from maximizing the value of
the venture
• All investors may benefit from knowing the
entrepreneur’s objective
18
19. Stages of New Venture Development
19
Stages
Opportunity
Research and
Development
Start-up Early Growth Rapid Growth Exit
Description
Real
Options
Actions
Assess/UpdateBusinessPlan
Assess/UpdateBusinessPlan
AssessOpportunity
ContinuetoNextStage
TestMarket/MarketResearch
InitiateRevenueGeneration
DetermineOrganizationalStructure
ConductR&D Activities,e.g.: ExpandTeamasNeeded ExpandTeamasNeeded Acquisition
DetermineOrganizationalForm
SecurePatent
InitiateProduction
ExpandFacilitiesasNeeded ExpandFacilitiesasNeeded Buy-Out
PrepareBusinessPlan
DevelopPrototype
BuildStartingInventory
Abandon
ExtendStage/Financing ModifyProduction/Financing ExtendStage/Financing ExtendStage/Financing
ModifyR&D Strategy ModifyMarketing/Financing Abandon
Abandon Abandon
Allresearchanddevelopment
activitythatmustbecompleted
beforerevenuegenerationcan
commence.
Allactivitiesrelatedtostartof
productionandmarketingand
initiationofrevenue-generating
activities.
Allactivitiesduringtheperiod
beforetheventurereachesalevel
ofsalessufficientforcash-flow
breakeven.
Allactivitiesduringtheperiod
afterbreak-evenandbefore
sustainableviabilityis
established.
Allactivitiesrelatedto
establishingcontinuingfinancing
andenablingearlyinvestorsto
harvest.
Allactivitiesthroughpreparationof
businessplanandbeforeincurring
significantexpense.
IPO
ModifyConcept
ContinuetoNextStage ContinuetoNextStage ContinuetoNextStage ContinuetoNextStage ChooseFormofExit
Assess/UpdateBusinessPlan BuildTrackRecordforHarvest EarlyInvestorsHarvest
BuildWebsite
BuildSalesandMarketingTeam
Assess/UpdateBusinessPlan Assess/UpdateBusinessPlan
AssessStrategicAlternatives
BuildResearchTeam
Stages of New Venture Development
AcquireFacilitiesandEquipment WorkTowardBreakeven WorkTowardProvenViability
ObtainContinuingFinancing:
ObtainSeedFinancing ObtainR&D Financing ObtainStart-upFinancing ObtainEarly-GrowthFinancing ObtainRapid-GrowthFinancing
Figure 1.4
20. Measuring Progress with Milestones
• Enable the parties to postpone financial
commitments until needed
• Function as a working hypotheses
• Milestones provide ways to enhance the
expected benefits of the project by structuring
opportunities to adapt to new information
• Critical in determining if and how the venture
should continue
20
21. Some Common Milestones
• Scientific proof of concept
• Prototype completion
• Commercial scale production
• Bellwether sale
• Profitability
• First competitive action
• First redesign or redirection
• First significant price change
21
22. Financial Performance and the Stages of
New Venture Development
• Development
• Start-up
• Early-growth
• Rapid-growth
• Exit
22
25. The New Venture Business Plan
• Presents the conclusions of the strategic planning
exercise, i.e., the strategic planning comes first
• Writing and circulating a business plan too early can
be a costly mistake
• Different than for an established business
– uncertainty about assumptions
– milestones and real options
– used for raising capital
25
26. Overview of the Business Plan
• Focus on the purposes and uses of the plan
• Identify and support key assumptions
• Highlight critical factors for success or failure
• Delineate milestones so users can evaluate
success
• Include financial projections to test the plan,
commit the entrepreneur, and facilitate
negotiation
26
27. Outline of a Typical Business Plan
Executive Summary
I. Background and Purpose of Venture
II. Market Analysis
III. Products and Services
IV. Development, Production, and Operations
V. Organization and Management
VI. Ownership and Control
VII. Financial Information
27
28. What Makes a Business Plan Convincing?
• Demonstrate understanding of the
technology, market, risks, and customer needs
• Defensible assumptions that yield testable
hypotheses
• Credible evidence of irrevocable commitment
• Evidence of reputation and certification
• Signals the quality and capabilities of the team
28
29. Some Pitfalls to Avoid in the Business Plan
1. Failing to identify clearly the customer
problem that the venture would address
2. Failing to identify clearly a narrow target
market
3. Relying on a business model that does not
make economic sense
4. Relying on a highly credentialed team that
lacks the critical expertise the venture needs
5. Failing to recognize the threats and potential
problems
29
30. Summary
• There are many types of entrepreneurial activity
• The Finance Paradigm and maximization of value
for the entrepreneur will guide decision making
• Milestones can create value and may benefit the
entrepreneur and investors
• A venture’s financing needs and options are
linked to its stage of growth
• Business plans are both important and different
for new ventures
30
Editor's Notes
These are all elements of the entrepreneurial process
Figure 1-1 – Survival Rates of New Ventures
The figure shows survival rates of new business establishments that were initiated in 1992 or 1997, as well as survival rates for subsamples of establishments that were classified as high growth based on changes in number of employees from 1992 to 1993. The dashed line is an estimate of survivors plus non-survivors that were considered by the entrepreneur to have been successful. Source: 1998-2002 Business Information Tracking Series. Data available in “Small Business Growth: Searching for Stylized Facts,” Small Business Administration Working Paper, 2007, prepared by Brian Headd and Bruce Kirchhoff.
Figure 1-2 – Global Difference in Supportiveness for Starting and Doing Business
The figure shows country ranks (highest being best) for ease of doing business based on 10 equal-weighted factors that are assessed by the World Bank. Ease of starting a business is one of the 10 factors. Source: World Bank, 2009. Available at http://www.doingbusiness.org/ economyrankings/. Rankings are for large population countries.
Figure 1-3 – Entrepreneurial Involvement of Workforce: 2006
The figure shows the percentage of a country’s workforce that is involved in entrepreneurial ventures. The workforce is defined as the working population between ages 18 and 64. Entrepreneurial involvement is classified as opportunity-based or necessity-based. Data are compiled by GEM consortium members via surveys of their local economies. Source: Global Entrepreneurship Monitor, 2006 Data Tables. Available at http://www.gemconsortium.org.
Figure 1-4 – Stages of New Venture Development
The figure shows the standard progression of development of a new venture from opportunity identification though stages culminating in exit. At each stage, the figure indicates the kinds of actions that normally are associated with the stage, as well as some of the real options the entrepreneur is likely to face.
Figure 1-5 – Stages of New Venture Development
The figure reflects five stages that are typical of new venture development. During the development stage, the venture generates no revenues, net income is negative, and cash flow is negative. Start-up begins when the firm acquires the facilities, equipment, and employees required to produce the product. During early growth, revenue is growing, but both net income and cash flow available to investors are negative. Rapid growth is the last stage during which external financing is required. During exit, the rate of growth declines to the point where cash flow available to investors is positive.