Question

The venture investment process can potentially result in attractive wealth generation for both investors and founders, if the process is pursued intelligently by the founders. Three of the following entries correctly describe elements of the strategy that founders should attempt to follow in order to build their own wealth while nonetheless attracting adequate capital from investors. The fourth is incorrect. Choose the incorrect statement. (Choose one.) Attempt to do a 'lean launch' so that you can get well into the venture's launch on minimal funds a. before requiring a larger investment from a venture capitalist. Fund the start up strictly from bank loans, since banks will often fund new ventures if the venture b. concept / business plan is sufficiently strong, and they require no stock in return. Attempt to develop the venture as far as possible using self-funding or funding from friendly sources O c. before seeking venture capital from formal investors. Attempt to find a venture capital firm that routinely invests in early stage ventures, since this often Od, means that funds will be available at more attractive terms.

Answer 1

Answer : B. Fund the start up strictly from bank loans, since banks will often fund new ventures if the venture concept / business plan is sufficiently strong, and they require no stock in return.

Explanation : As the elements that founder must follow to build their own wealth are through crowdfunding, finding the investors who usually invests in startups, seek for lean launch that is by shortening the product development cycle.