Learning Objectives

At the end of this chapter you should be able to:

1.Discuss the nature of the equity gap for small firms’ finance

2. Describe the differences between formal and informal venture capital

3. Discuss the nature of the formal venture capital industry

4. Discuss the potential of business angels for closing the equity gap for small firms’ finance

5. Describe the process of a venture finance investment

6. Advise an entrepreneur on requirements of venture capital companies, if seeking venture finance.