Entrepreneurs need to raise money when they start a new business. Existing businesses may need to seek out funds to expand operations. Many entrepreneurs may not be aware of the various financing options they can use. Raising money is one of the functions of finance, and knowing how small businesses raise capital is helpful.
Assessment Prep
Imagine that you are in the Chief Financial Officer (CFO) role at a medium-sized organization. The company wants to expand the products and services offered to its customers and is seeking to raise capital for this expansion. Over the next few weeks, you and your colleagues will meet with various potential financiers, including business angels, venture capitalists, banks, and finance companies. You are aware that not all your colleagues have a finance background. You have decided to create a presentation explaining the various stakeholders involved in raising business capital.
Assessment Deliverable
Create a 14- to 16-slide presentation with speaker notes explaining the role and effectiveness of the different types of financial stakeholders. The presentation should:
- Explain the four types of financial stakeholders - business angels, venture capitalists, banks, and finance companies.
- Compare the motivations, resources, and risks associated with each stakeholder.
- Recommend the best type of financier to address the capital needs of your organization. Consider both the pros and cons of this financial arrangement.
Support your presentation with scholarly resources.
Format citations and references using current APA guidelines.
Submit your assessment.