Quiz – The Winds of Change

The risks that must be mitigated to attract investor capital are…

Most entrepreneurs can accurately predict when a competitor will enter their market space because the truly understand the dynamics of their industry.

Most investors want to see entrepreneurs “boot-strapping their way” to success and great wealth for the future, by living like paupers now.

Most young companies, once they receive their initial funding, will have sufficient net operating margins to expand the company’s growth organically with internally generated revenue.

Hybrid securities are considered fixed income securities, due to the stated interest rate or dividend. The US fixed-income market is 25% larger than the US equity markets

The most important attitude one can adopt is that your Company’s securities offering is your newest and largest client or customer.

Hybrid securities do not normally have voting rights.

By selling hybrid securities only to passive investors in the first few rounds of financing, you will always control the terms of the deal, maintain voting control, and build a growing pool of private investor contacts

You should always be dealing from a “relative position of strength” when seeking capital. Adopting these few belief systems and exercising these concepts as your primary discipline will further your Company’s relative position of strength.