1. Finance and Resources
Super-project.eu

2. Financial sources at new venture development stages
Contents
Aims for the session 1
What is an integral approach to a new venture financial strategy and support system? 2
Financial sources at new venture development stages 3
Operating resources 4
Human resources 5

3. Aim for the session
By the end of the session, students will:
understand importance of alignment among key resources in a business venture.
learn about potential sources of new venture financing and their relation to stage of venture development.
understand key areas in operating and human resources management in start-up development.

4. 1. Which are Key Resources for New Ventures?
Finance
Operating resources
Human Resources

5. 2. Integral Approach to a New Venture Financial Strategy
Figure 4-1 – The Interactive Components of Strategy
Smith et al. (2011,p.126)

6. 2. Integral Approach to a New Venture Financial Strategy
Financial Strategy as a Component of Strategic Planning for New Ventures
Strategic planning for new ventures should simultaneously consider
product-market strategy
organizational strategy
financial strategy
The scope of financial strategy is quite broad
type of financing
amount of financing
financial contracting.

7. Figure 1-5 – Stages of New Venture Development
The figure reflects five stages that are typical of new venture development. During the development stage, the venture generates no revenues, net income is negative, and cash flow is negative. Start-up begins when the firm acquires the facilities, equipment, and employees required to produce the product. During early growth, revenue is growing, but both net income and cash flow available to investors are negative. Rapid growth is the last stage during which external financing is required. During exit, the rate of growth declines to the point where cash flow available to investors is positive.
Smith et al. (2011,p.20)

8. Financial Sources at New Venture Development Stages
Figure 2.1 – Sources of New Venture Financing
Black shading indicates primary focus of investor type. Gray shading indicates secondary focus, or focus of a subset of investors.
Source: Smith et al (2011, p. 38)

9. 3. Brief Description of Each Source of New Venture Financing
Video: Sources Of Capital: Raising Money & Financing

10. 4. Operating Resources
Key Questions to be Answered by Entrepreneur:
What operating resources are needed?
Where they will come from?
How they will be used?
How their usage will be controlled and monitor

11. 4.Which are Key Operating Resources

12. Key Areas Recruitment Training Team and Teaming Contracts
5. Human Resources
Key Areas
Recruitment
Training
Team and Teaming
Contracts
The Other HR Admin.

13. Wrap – up!
Thank You !