Venture Capital Start Up Business Plan

Running head: Venture Capital

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MBA 652 I

Lynn University

Dr. Joseph Rooney

Venture Capital

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I have completed the questionnaire provide from the coursebook and I

have read this chapter. Venture Capital is very important for expanding your business and it has

the power to boost it to the next level. I want to found a fast casual fast food restaurant, which

offers high quality food like burgers and fries for an affordable price, although it is slightly

higher than common fast food chains. This is a very difficult journey and venture capital is a

good option for the next step. First of all I would have to start my business and prove my concept

on the market in order to convince business angels and to increase my business’s value. The

earlier business angels invest in companies, the higher the stake. I would like to finance my

business as long as possible through my own money, loans or friends. On the other hand venture

capitalists have the necessary knowledge and a specialized investor in the field of fast casual

dining could provide highly important information to avoid (strategic) mistakes, which can lead

to high write-downs or bankruptcy. Furthermore owning your own business, is comparable to

raising a child. In best case you are truly passionate and visionary about your business and

business angels usually see just profits and this could lead to clashs of interests. Trends may have

risks and not every business angel wants to take the same risks like you, otherwise he provides

money and you have to reach a consensus. You have to be aware of those problems, before you

cooperate with venture capitalists.

Private-equity companies or business angels are usually focusing or

specialized in investing into companies with certain maturity levels: Seed, Start-up, Expansion,

Replacement capital and Buyout. The entrepreneur has to be aware of the venture capitalists

specialization, during the process of decision-making. Expansion means...