ENTREPRENEURIAL FINANCE / HYBRID TRAINING

REGISTER
REGISTER
  • ENTREPRENEURIAL FINANCE / HYBRID TRAINING

    This two-day hybrid program introduces participants to the fundamental concepts of entrepreneurial finance, funding sources, and investment processes. The program examines the financial decisions faced by ventures at different stages of growth and the impact of these decisions on venture development.

    Let us assume that a mature manufacturing firm requires a certain amount of capital to develop a new product or to expand into a new market. This firm has access to a wide range of financing alternatives. Existing cash reserves may be sufficient to fund the new investment. If not, the firm may seek to accelerate the collection of receivables or extend the maturity of its liabilities. It may also divest part of its assets or increase its equity through a capital raise. Perhaps the most straightforward option—provided the firm has a strong credit profile—is to obtain bank financing; otherwise, it may resort to borrowing from a factoring institution.

    Now consider a newly established startup. Financing constitutes one of the five fundamental pillars of any entrepreneurial venture. Capital is required to develop products, initiate production, and generate sales. However, nearly all of the financing options available to mature firms are largely inaccessible to entrepreneurs. A founder attempting to establish a new venture typically lacks sufficient cash reserves or receivables, usually does not possess significant assets or equity, and—except in rare cases—cannot obtain commercial bank financing. How, then, can such a venture survive and grow? This question explains the core of this program: the financing of new ventures.

    The funding sources available to entrepreneurs can be summarized as follows: personal savings, funding from family and friends, prizes and awards, grants, internally generated cash flows, crowdfunding, and angel investment. Once a venture reaches a certain level of maturity, venture capital investment—across one or multiple rounds—may become available. Although relatively uncommon in our country, successful ventures may also raise capital through an initial public offering. In the final stage, the venture may be acquired by a larger organization. The actors involved throughout this journey differ substantially from those that provide financing to mature firms. The defining characteristic of this sector is the high risk–high return trade-off; as the venture grows, both risk and potential return naturally decline.

    In this program, we will examine these financial sources in detail, discuss how entrepreneurs can access them, analyze their respective advantages and disadvantages, and identify the key actors operating at different stages of the entrepreneurial lifecycle. Industry leaders will also join the program as guest speakers to share their perspectives on venture financing.

Privacy PDPL Sale Agreement Contact

Copyright © 2016 CEF | Center of Excellence in Finance All rights reserved..