1.4. The Map of Equity Investment: An Investor’s Perspective

Private equity operators and venture capitalists are just a sample of the groups in the financial system. They represent one of the various options that entrepreneurs consider to finance their business. At the same time, entrepreneurs must think about profitability, investment needs, sales growth, and cash flow to find the right counterparty.

Many potential investors are considered from both a debt and an equity perspective:

  • Founder and family
  • Other partners
  • Business Angels
  • Private equity operators and venture capitalists
  • Banks
  • Trade credit operators
  • Financial markets

For equity investors it is critical to answer these questions:

  1. What is the financial need?
  2. What part ...

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