- Lower capital requirements
increase the number of prospective sources that can support the
initiative.
- The strategy that emerges from
concentrating on minimizing capital requirements also helps to
counteract delay and opposition from the existing industry
participants, as described on the Avoiding
Pitfalls
page.
- Lower capital requirements
enable the initiative to be funded in a single event, although
with phased delivery of funds. This helps to preserve equity and
reduce the dilution that inevitably occurs when multiple
transactions are required to fund various phases of the plan, as
described on the Minimizing
Dilution
page.
- The foregoing benefits lead to
greater satisfaction on the part of the innovator/entrepreneur as
well as financial participants, increasing the likelihood of
involvement in subsequent opportunities.
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