Dilemma of new entrepreneurs in fund-raising strategies
Venture capitalists (VCs) receive many business plans and proposals, sometimes 100 or more a month. However, they typically reject 98% of opportunities presented especially by young companies.Perhaps this may be due to the lack of understanding or the inability of entrepreneurs(of the young companie...
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| Format: | Book Section |
| Language: | English |
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ASEAN Universities Consortium of Entrepreneurship Education (AUCEE)
2010
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| Online Access: | https://repo.uum.edu.my/id/eprint/2985/1/Pages_from_The_First_Seminar_on._Entrepreneurship_and_Social_Development_in_Asean8899.pdf |
| _version_ | 1825740068223975424 |
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| author | A. Rahman, Badruddin |
| author2 | Ismail, Dahlan |
| author_facet | Ismail, Dahlan A. Rahman, Badruddin |
| author_sort | A. Rahman, Badruddin |
| collection | UUM |
| description | Venture capitalists (VCs) receive many business plans and proposals, sometimes 100 or more a month. However, they typically reject 98% of opportunities presented especially by young companies.Perhaps this may be due to the lack of understanding or the inability of entrepreneurs(of the young companies) to fulfill the three basic principles of entrepreneurial finance: (a) More cash is preferred to less cash (b) Cash sooner is preferred to cash later; and (c) Less risky cash is preferred to more risky cash. It is almost a pre-requisite for venture capital industry to supply capital and other required resources to entrepreneurs who are in high potential business, in
hoping that a high rate of return on invested funds can be realized. Specifically. VCs' assessment of probability of survival is significantly higher for ventures facing high key success factor stability, that are late followers, have long lead times, low competitive rivalry, high educational
capability, and high industry related competence. These factors may contribute to dilemma of new entrepreneurs in their fund-raising strategies. |
| first_indexed | 2024-07-04T05:20:39Z |
| format | Book Section |
| id | uum-2985 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T05:20:39Z |
| publishDate | 2010 |
| publisher | ASEAN Universities Consortium of Entrepreneurship Education (AUCEE) |
| record_format | eprints |
| spelling | uum-29852016-04-24T01:26:18Z https://repo.uum.edu.my/id/eprint/2985/ Dilemma of new entrepreneurs in fund-raising strategies A. Rahman, Badruddin HB Economic Theory Venture capitalists (VCs) receive many business plans and proposals, sometimes 100 or more a month. However, they typically reject 98% of opportunities presented especially by young companies.Perhaps this may be due to the lack of understanding or the inability of entrepreneurs(of the young companies) to fulfill the three basic principles of entrepreneurial finance: (a) More cash is preferred to less cash (b) Cash sooner is preferred to cash later; and (c) Less risky cash is preferred to more risky cash. It is almost a pre-requisite for venture capital industry to supply capital and other required resources to entrepreneurs who are in high potential business, in hoping that a high rate of return on invested funds can be realized. Specifically. VCs' assessment of probability of survival is significantly higher for ventures facing high key success factor stability, that are late followers, have long lead times, low competitive rivalry, high educational capability, and high industry related competence. These factors may contribute to dilemma of new entrepreneurs in their fund-raising strategies. ASEAN Universities Consortium of Entrepreneurship Education (AUCEE) Ismail, Dahlan Yahya , Mohd Azlan Latif, Abdul Aziz Zalazilah, Mohd Hanizan Hamidon, Syahirah Jaafar, Mohd Khairi 2010 Book Section PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/2985/1/Pages_from_The_First_Seminar_on._Entrepreneurship_and_Social_Development_in_Asean8899.pdf A. Rahman, Badruddin (2010) Dilemma of new entrepreneurs in fund-raising strategies. In: The First Seminar On: Entrepreneurship and Societal Development in Asean (ISE-SODA 2010) "Achieving Regional Growth through Entrepreneurship Education", 27th February-1st March 2010, City Bayview Hotel Langkawi. ASEAN Universities Consortium of Entrepreneurship Education (AUCEE), pp. 284-296. ISBN 983-2078-36-4 |
| spellingShingle | HB Economic Theory A. Rahman, Badruddin Dilemma of new entrepreneurs in fund-raising strategies |
| title | Dilemma of new entrepreneurs in fund-raising strategies |
| title_full | Dilemma of new entrepreneurs in fund-raising strategies |
| title_fullStr | Dilemma of new entrepreneurs in fund-raising strategies |
| title_full_unstemmed | Dilemma of new entrepreneurs in fund-raising strategies |
| title_short | Dilemma of new entrepreneurs in fund-raising strategies |
| title_sort | dilemma of new entrepreneurs in fund raising strategies |
| topic | HB Economic Theory |
| url | https://repo.uum.edu.my/id/eprint/2985/1/Pages_from_The_First_Seminar_on._Entrepreneurship_and_Social_Development_in_Asean8899.pdf |
| work_keys_str_mv | AT arahmanbadruddin dilemmaofnewentrepreneursinfundraisingstrategies |