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Full-Text Articles in Business
Law And Entrepreneurial Opportunities, D. Gordon Smith, Darian M. Ibrahim
Law And Entrepreneurial Opportunities, D. Gordon Smith, Darian M. Ibrahim
Faculty Publications
No abstract provided.
Should Angel-Backed Start-Ups Reject Venture Capital?, Darian M. Ibrahim
Should Angel-Backed Start-Ups Reject Venture Capital?, Darian M. Ibrahim
Faculty Publications
The conventional wisdom is that entrepreneurs seek financing for their high-growth, high-risk start-up companies in a particular order. They begin with friends, family, and "bootstrapping" (e.g., credit card debt). Next they turn to angel investors, or accredited investors (and usually ex-entrepreneurs) who invest their own money in multiple, early-stage start-ups. Finally, after angel funds run dry, entrepreneurs seek funding from venture capitalists (VCs), whose deep pockets and connections lead the startup to an initial public offering (IPO) or sale to a larger company in the same industry (trade sale).
That conventional wisdom may have been the model for start-up success …