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Monday, October 17, 2011

Chapter 7 - Equity Financing

During a recent discussion on the inner trappings of my business with a co-worker, the topic of financing came up.  "You do know the best way to secure financing, right?" my co-worker rhetorically asked.  Although it may sound crazy, I really hadn't given it that much thought.  And as I ponder, it truly is laughable –albeit completely honest.  My co-worker goes on explaining how angel investors are a start-ups dream.  I haven’t the faintest idea what he is talking about but I node agreeingly for the sake of ego. 

Chapter seven covers equity financing extensively and does a very good job at detailing the differences between various types of investors and investments.  Ironically, I have been hearing the term “Angel Investors” a lot lately meant to do a little research simply for personal edification.  While my company (so far) runs off personal investment, the notion of angels looking for a cause to invest is very motivating.  With a better understanding of valuation, venture capital, and informal investments I think I am better poised to make enlightened decisions concerning our company’s financial future.  While I don’t think we are ready to start polling resources from friends and family quite yet, at least we’ll know how to go about procuring investments when the time comes.

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