ABSTRACT
Entrepreneurs with ventures that have the potential for high growth can face major challenges in financing the operating and capital needs that the businesses face throughout their development. High-growth ventures most often require financing on the scale of millions of dollars, which normally is the domain of equity investors such as private equity funds and venture capitalists. Staging of financing allows investors to deal with the uncertainty of the validity of the idea and the untested nature of the management in the enterprise. Venture capitalists are active players in the financing of new firms and, like any potential investor, demand a substantial amount of information and control from the firm. Contacts are the financial and general business relationships that can assist the firm in marketing its products and services, perhaps outsourcing expensive, non-core functions, and finding optimal personnel. A successful business must have some sort of competitive advantage.
