In the previous learning pathway on Financing a new start-up, we noted the different phases and types of financing during the life cycle of a new business, and how each phase is associated with different types of funding.
During this life cycle, the risk profiles of the business will change. Ultimately, investment decisions are based on risks versus reward, so entrepreneurs need to consider strategies for reducing risk during the start-up phase.
Annotation activity: Reducing risk over the business life cycle
Read, annotate, and comment on the following articles using hypothes.is. (Remember to tag annotations using the course code: “IENT103”.)
- Gasca, P. (2015, May 14). Reduce These 9 Startup Risks for a Better Shot at Investor Funding (direct hypothes.is link).
- Startupexplore. (2014, October 9). Understanding differences in startup financing stages (direct hypothes.is link).
- CFI. (n.d.). Private Equity vs Venture Capital, Angel and Seed Investors Guide (direct hypothes.is link).