Funding a New Biotechnology Firm Assignment Example | Topics and Well Written Essays - 1000 words

Funding a New Biotechnology unbendable - Assignment ExampleBragg notes that this may be advantageous as the entrepreneurs are able to maintain self-possession of the enterprise. He contends that tax deduction is another merit for using this approach. However, the demerit includes repayment of the principal cadence accompanied by interest. The gain is that the entrepreneurs are able to encounter additional pecuniary resource and develop from step to the fore up. Angel investors are yet another focus inside which one can acquire financing. This fit in to Hill & Power (2002) is acquiring danger capital from individual investors. It is more appropriate for come out of the closet up business that has yet to get revenues or sales. The individual investors may be willing to invest if conditions of reach control are accepted. They also may want to invest if they have prior knowledge of victory in that particular field, which in these regard is the biotechnology enterprise. In hi s article, DeBaise (2009) observes that angel investors are wealthy individuals who may want ownership in the enterprise. In 2007 angel investors invested around $26 billion, which amounts to around 57,120 ventures that breaks down to $450,000. This is match to the research carried out by venture research at the University of New Hampshire in the year 2007. This, it contends, leads to a powerful resource for new entrepreneurs (DeBaise 2009). Self funding is another way through which the entrepreneurs can acquire funds. This is where they can decide to raise the required amount through contributions from own funds (Megginson 2004). Examples of ventures that started in this way include Dell Company that had its founder Michael Dell start with his own savings. To a large extent, this is precise encouraging as the advantage is that the entrepreneurs are able to maintain control of the... This essay stresses that the decision to start any business is excite and encouraging to the growt h of the economy of any country. However, many entrepreneurs blow up their dreams of starting up businesses due to lack of finances to develop their ideas. It is with this view that the above paper has offered the diverse ways the entrepreneurs can solicit for funds. The prospects of acquiring funds from any of the proposed funds outline are exciting but what is required is caution in whatever choice one takes. Recommending any particular funds strategy may deem inconsiderate but making a preference is rather reasonably so as the entrepreneurs can be able to contemplate what they want. This is to be backed by testify that indeed that particular funding strategy has been successful. Angel investors are yet another way within which one can acquire financing. This paper makes a conclusion that the United States is ranked top as a biotechnology leader with many investors in that particular venture and the highest funding strategy at an 80 percent is venture capital. This stands out then as the most appropriate funding strategy due to the nature of venture. Biotechnology venture is known to be a high risk venture thus requiring alot of capital and investors who have the knowledge of the market. Venture capital in this perspective appears to be the theme for the entrepreneurs.