Site MapHelpFeedbackTaking it to the Net
Taking it to the Net
(See related pages)

Purpose

To learn how small-business owners can obtain equity financing by finding investors willing to buy a stake in their companies.

Exercise

When it comes to finding equity capital, many small-business owners have a difficult time finding investors. The Access to Capital Electronic Network (ACE-Net) is an Internet-based listing service developed by the Small Business Administration that allows entrepreneurs to present information about their small, growing company to venture capitalists and institutional and accredited individual investors across the country. ACE-Net encourages entrepreneurs who meet certain criteria to list their businesses and then makes their listing available to qualified investors. Go to http://activecapital.org/entrepreneurs_enroll and see whether the following businesses qualify for participation on ACE-Net:

1. Growing Like a Weed is a lawn care business organized as a limited liability company. It needs $25,000 to buy additional equipment in order to expand. Does it meet ACE-Net's listing criteria? Why or why not?

2. Allied Technology Corporation produces computer chips. It needs $6 million to build a new manufacturing plant. Does it meet ACE-Net's listing criteria? Why or why not?

3. Bells'n'Whistles is a pinball refurbishing company. Its founding partners need $300,000 to buy inventory. Do they meet ACE-Net's listing criteria? Why or why not?

4. Lettuce Entertain You is a corporation needing $500,000 to remodel an old warehouse to house its latest restaurant. Does it meet ACE-Net's listing criteria? Why or why not?








Nickels: Undstd Business 9eOnline Learning Center

Home > Chapter 18 > Taking it to the Net