Abstract
Students and researchers often misunderstand the function of investors, even if they have a business or finance background; they see them as a source of capital only. Entrepreneurs should consider investors in broader terms than that. Expertise, network, and influence are much more important than paying the next round of salaries. This chapter explains the most common sources of early-stage capital: venture capital firms and angel investors. It describes which other benefits these investors may have for startups and at what stage of development entrepreneurs should approach them (hint: much later than most people think).
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Notes
- 1.
Spencer Ante, Creative Capital: Georges Doriot and the Birth of Venture Capital (Boston: Harvard Business School Press, 2008).
- 2.
Joshua Lerner, Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed, and What to Do About It, (Princeton: Princeton University Press, 2009), 41.
- 3.
John H. Cochrane, The Risk and Return of Venture Capital (Cambridge, MA: National Bureau of Economic Research, 2001). http://www.nber.org/papers/w8066?
- 4.
Kelly Tay, “Government Grants Seen Crowding Out Angel Investors,” Business Times (June 9, 2014).
- 5.
Eric Ries, The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses (New York: Crown Business, 2011).
- 6.
Tina L. Selig, What I Wish I Knew When I Was 20: A Crash Course on Making Your Place in the World (New York: HarperCollins, 2009).
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© 2015 Manuel Stagars
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Stagars, M. (2015). Venture Capital and Angel Investors. In: University Startups and Spin-Offs. Apress, Berkeley, CA. https://doi.org/10.1007/978-1-4842-0623-2_12
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DOI: https://doi.org/10.1007/978-1-4842-0623-2_12
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Publisher Name: Apress, Berkeley, CA
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Online ISBN: 978-1-4842-0623-2
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