This website uses cookies to ensure you have the best experience. Learn more

Trend In Entrepreneurial Activity And Funding During Fluctuating Economic Cycles

1675 words - 7 pages

Trend in Entrepreneurial Activity and Funding During Fluctuating Economic Cycles
Global capital markets have been greatly impacted by the current economic climate. This has created significant challenges in startup capital and infusions of capital from Venture Capital funds or other types of angel investment. 2011 was, indeed, a transitional year for small businesses around the world. The primary issue is that it has become clear that credit will remain less available and that many institutions will remain risk-averse. A simple assessment would be that there was a hope that credit would start flowing again and that investment would be less restricted and it has now become ...view middle of the document...

The pendulum of venture capital is unlikely to swing back to the easier access to investment, at least for the near-future, if not for decades. Some of the changes brought on by global pressures such as the collapse of default credit swaps, the bursting of the real estate bubble, and the resultant drying up of credit. Looking at small businesses that are looking for funding in 2011 and 2012, there are no easy solutions on the horizon.
What an Entrepreneurial Startup Should Know
In order to make sense of venture capital, in order to make a venture viable in the current market, it takes more than hope and a few good ideas. Risks need to be minimized and rewards need to be maximized. While one could say that this has always been the case, the primary change has been the thoroughness of the vetting and how these new concerns have become the primary tools for making decisions. Ideas, prototypes, and being able to sustain profitability are still relevant—but the value before investment also has to do with keeping costs to a bare minimum. Early stages of capital often involve venture capitalists becoming majority owners. Further rounds end up being based on what an entrepreneur can really do. It is also more important than ever to understand that selling off a venture is more important than ever. Money dries up, sometimes because investors lose interest, and more and more startups are better suited to be run as something added on to a larger corporation with similar interests. Now only do the stages of venture capital investment move more quickly, the life cycle also moves more quickly and it is important that everything moves rapidly before anyone changes their mind.
Current Economic Cycle
The life cycle of financing can move at many different rates, but a general assessment would be that there needs to be seed money, then startup capital, the financing of working capital to support the first sales, then financing to reach the all-important breakeven point. Early startup financing often looks at current assets, fixed assets, cash flow requirements, and organizational costs. Financing required to launch an IPO is often also considered. No organizations can spend as much as they once did. There used to be an attitude that the economy would have a sudden turnaround and that whoever had the most invested when the turnaround occurred. Now investors want to be more hands-on, have access to more information, and they want to spend less. With less money available, the current economic cycle leads to incubators because there is less money to spend. Investors want to share knowledge or social and emotional capital, open doors instead of open bank accounts.
Market Entrants
Venture capitalists have become risk-averse enough that they are most interested in being patient and then providing funds that will effectively time the market. They don’t want to invest until the business can prove that it’s working and that the extra investment will be enough to...

Other Papers Like Trend In Entrepreneurial Activity And Funding During Fluctuating Economic Cycles

Private Sectors and Public Private Sectors to Improve the Entrepreneurial Mindset in Young Jamaicans?

1392 words - 6 pages . Purpose of Study The purpose of our research is to address the problem “What can the government and other agencies mentioned do to encourage the entrepreneurial mindset in young Jamaicans?” We realized that young Jamaicans have a negative outlook on entrepreneurship because of the persistent economic factors that give a daunting impression of entrepreneurial success such as: government regulations and taxations

What Major Changes in Political Structures, Social and Economic Life, Occurred During Each of the Following? the Sui Dynasty, the Tang Dynasty, the Song Dynasty

762 words - 4 pages Ariana Caraza AC1204585 Assignment 5 HS150 World Civilizations China was divided for almost four centuries. It became unified in 581 with the founding of the new dynasties, Sui, Tang, and Song dynasties. During the time of these dynasties, many changes took place. There were changes in the political, social, and economic structures. The first changes took place during the Sui dynasty in 581. Additional changes took place during the

The Association Of Physical Activity And Stress In College Students

1985 words - 8 pages , Perna, 2007). In addition, The purpose of this study is to measure the relationship between physical activity and stress levels among college students. Aselton (2012) was interested in finding out how depressed college students cope with their daily sources of stress. The study included 13 students who were either taking or have taken anti-depressants during their college career. Each participant completed six to eight online interviews with

Prostitution: a Growing Trend in Neveda, Usa and Other European Countries

1947 words - 8 pages illegal except for in Nevada, but in other European countries prostitution has becoming a growing trend. Anyone who sells sexual services including men, children and women are consider prostitutes, but since prostitution is heavily women oriented, they will be my focus. I strongly believe that prostitution whether should be illegalized because it increases sex trafficking and is immoral. I believe that prostitution should be criminalized

Women's Economic Opportunities and Health in Brazil

2710 words - 11 pages Women’s economic opportunities and health in Brazil is affected by many factors. Brazilian women’s economic opportunities are affected by such factors as gender inequality, violence from men, and racial inequality. Health is affected by reproductive rights, maternal mortality rates, domestic violence and sexual violence. This paper will examine health and economic opportunities available to women in the countries of Saudi Arabia, the United

Is The Study Of Poetry A Worthwhile And Relevant Activity In The 21st Centuries Society?

585 words - 3 pages Is the Study of Poetry a Worthwhile and Relevant Activity in the 21st Centuries Society?In the 21st Century, technology has advanced at an amazing rate and we are losing the way we use to write as e-mail supersedes handwritten letters and tapes replace books. With our much more hectic lifestyles and the new topics on the school syllabus such as information technology and heath studies, the available time to study or write poetry is decreasing

Creativity and Its Role in Entrepreneurship, Innovation and Economic Development

1705 words - 7 pages Introduction The concept of entrepreneurship, innovation and economic development is closely related to our life. A look at your surroundings and you shall find the product of entrepreneurs, packaged in innovative ideas, which might draw reflection on how the economy of a nation is doing today. For instance, standing in front of my eyes is a heat-resisting vacuum flask, with branded Thermos. The Thermos’ vacuum flask was invented by a

Economic, Social and Political Change in 19th Century

977 words - 4 pages The profound economic change that occurred in the early 1900’s was largely influenced and formed by the industrial revolution, in particular the second wave that occurred in the late 1800’s. The revolution as a whole resulted in the change from economies based on agriculture and farming, to industry based profits. This second wave of the revolution not only refined and improved the prior inventions of iron and coal, but brought with it new

Changes in Technological Progress and Its Contribution to Economic Growth

604 words - 3 pages Week 8: Current Event Four Changes in Technological Progress and its Contribution to Economic Growth This paper addresses this question by looking at how the behavior of labor productivity grew at a significantly faster rate in the late 90's. The New Economy hypothesis to be examined is whether investment in IT caused the acceleration in productivity. The evidence suggests a growing

The Ways That Physical Activity Can Contribute to Physical, Psychological and Social Improvements in Health and Wellbeing

1399 words - 6 pages Within this essay I have demonstrated a clear understanding of the ways that physical activity can contribute to physical, psychological and social improvements in health and wellbeing. According to World Health Organisation, WHO, Physical activity is defined as any bodily movement produced by skeletal muscles that requires energy expenditure, (WHO, 2015). There are various concepts on health and wellbeing and remains a complex subject but

Moderate-Intensity Exercise and Its Reduction of Chronic Stress Burnout in College Women Who Perform No Regular Physical Activity

2472 words - 10 pages Tyler Anderson Dr. Kirk Exercise Physiology Sunday, December 4, 2011 Moderate-Intensity Exercise and its Reduction of Chronic Stress Burnout in College Women who Perform no Regular Physical Activity Introduction: If you were to go out and ask 12 random people on the street what their definition of stress was, you would more than likely get 12 different answers. This is due to the fact that there is not a definition of stress that

Related Essays

People And Economic Activity Essay

1197 words - 5 pages PEOPLE AND ECONOMIC ACTIVITY Part 6 - The Future Directions of Tourism NB. Each of the 8 parts in this topic should cover one week’s work. Each week will consist of 4 one hour lessons. Page references are to the textbook Global Interactions. Read all text and directions. Responses may be returned to me via Moodle or hand-written or printed and then posted. Lesson 1 Read carefully Table 3.1.12 on p. 305 1. Use a search engine to

Economic History And Health Care Funding

836 words - 4 pages Economic History and Health Care Funding Monica Williams HCS/440 July 1, 2013 GEOFFREY SUSZKOWSKI Economic History and Health Care Funding The paper that is being written is covering the history of economics and how the economy and health care funding has changed. The paper will reveal how the two compare in today’s society. It will evaluate the money used to fund certain health care

Trends In Therapeutic Partnering Market Trend And Share

2696 words - 11 pages . These events are where dealmaking gets initiated through numerous back to back meetings. The main body of the report is provided in chapter 6. In-depth profiles of each of the top 35 therapeutic target areas according to deal frequency during the period 2009-2014 provide everything required to assess the potential of the therapeutic area and its active partner companies. Each profile includes a partnering activity overview, deal financials

Sport And Physical Activity In Australian Society

2618 words - 11 pages Sport and Physical Activity in Australian Society PDHPE Part 1 Australian Sporting Identity For many Australians, sport is more than just a hobby, but a way of life. Sport has the ability to unite a community, a state or even a country. As seen from the above photograph, Rugby League’s State of Origin series is an example of an event that promotes regional identity. There is great rivalry between both NSW and QLD and supporter