ENT301: Methods of Initial Funding - Business Finance and Startups

This assignment delves into the crucial topic of initial funding methods for startups and businesses. It begins by defining equity financing as a primary method, where firms raise capital by selling stocks. The assignment then explores resources like matching sites for investors and entrepreneurs in the U.S. It discusses the effectiveness of these resources, particularly for technology-based ventures. Venture capital, as a financing method, is examined, emphasizing its role in supporting long-term growth and the types of companies that attract such investment. The assignment also identifies top venture capital firms in the United States. Finally, it connects these funding methods to the student's own business idea, highlighting the relevance of technology-based concepts in securing investment.

Running head: METHODS OF INITIAL FUNDING
METHODS OF INITIAL FUNDING
Name of the Student:
Name of the University:
Author Note

1METHODS OF INITIAL FUNDING
Table of Contents
Answer to Question 1: -.............................................................................................................2
Answer to Question 2: -.............................................................................................................2
Answer to Question 3: -.............................................................................................................2
Answer to Question 4: -.............................................................................................................2
Answer to Question 5: -.............................................................................................................3
Answer to Question 5: -.............................................................................................................3
Answer to Question 6: -.............................................................................................................3
Answer to Question 7: -.............................................................................................................3
References..................................................................................................................................4

2METHODS OF INITIAL FUNDING
Answer to Question 1: -
Equity financing is a most common method of rising fund in the earlier stage of
business. In this method, firms rise capital by selling stocks of firm to the outsider investors
(Drover et al, 2017). Here, investor receives the ownership interest of the firm in return of
their investment.
Answer to Question 2: -
Followings are the some matching sites for investors and entrepreneur of U.S.: -
 www.capitalgroup.com
 www.entrepreneurandangels.com
 www.seedinvest.com
 www.funded.com
 www.angel.com
Answer to Question 3: -
Yes, this services are effective as various start - up firms of United States has been
risen initial funds throw this services. This are much simple way of rising fund for the
business as well as new entrepreneurs also get guidance of the experienced persons.
Answer to Question 4: -
As my idea is unique as well as fully based on technology, hence these will definitely
work of my business. As they also prefers to invest in unique and technology based
initiatives. I only need to do is to present my idea in an attractive and effective way then these
will definitely work for my business.

3METHODS OF INITIAL FUNDING
Answer to Question 5: -
This is a method of financing start – up firms or small business, which the investors
think that have potential to report growth in long – term. Here, the investors can be
individual, banking firm or any other financial institutions (Wadhwa, Phelps & Kotha, 2016).
The venture capital does not involve monetary term always some time it is provide technical
and management support to the firm.
Answer to Question 5: -
Mainly, the technology based companies and industries, now a days, receiving more
money from the investors. This involves industries like artificial intelligence, online business
plans and like.
Answer to Question 6: -
As per CB Insights, the followings are the top three active venture capital of United
States: -
 Andreessen Horowitz
 Foundry Group
 New Enterprise Associates
Answer to Question 7: -
As discussed above they mainly investing in unique and technology based ideas and
ours business idea is also based on the technology as well as innovative. Hence, they are
investing in my sectors.

4METHODS OF INITIAL FUNDING
References
Drover, W., Busenitz, L., Matusik, S., Townsend, D., Anglin, A., & Dushnitsky, G. (2017). A
review and road map of entrepreneurial equity financing research: venture capital,
corporate venture capital, angel investment, crowdfunding, and accelerators. Journal
of Management, 43(6), 1820-1853.
Wadhwa, A., Phelps, C., & Kotha, S. (2016). Corporate venture capital portfolios and firm
innovation. Journal of Business Venturing, 31(1), 95-112.