|
|
|||||
|
|
Smaller teams, bigger wins. As described on the Minimizing Capital Requirements page, StarAnchor concentrates on a strategy and path that results in numerous benefits and avoidance of various disadvantages. |
|
|
Among the benefits that derive directly from minimizing capital requirements is the fact that entire initiatives can be funded from a single source, in a single event (albeit there may, and probably will, be tranches of funds provided in accordance with milestones in the business plan). The benefits of this tactic are the avoidance of the pitfalls that plague early stage ventures (see Avoiding Pitfalls page), but they go beyond that. In particular, funding the entire initiative in a single agreement preserves the equity position not only of the innovator/entrepreneur but also of the investor. In the traditional model, later stage investment typically comes from parties different from the early stage investors. Paraphrasing the recent quote about the Golden Rule, "The last money in makes the rules." This puts both the innovator/entrepreneur but also all earlier stage investors at risk of dilution, unless one or more have anti-dilution provisions, which then only shifts this risk to other participants - it does not eliminate the risk. By contrast, securing complete funding requirements in a single event does in fact eliminate this risk for both the innovator/entrepreneur as well as the funding source. StarAnchor expects that this tactic will lead to greater satisfaction on the part of the innovator/entrepreneur as well as financial participants, increasing the likelihood of involvement in subsequent opportunities. |
|
|
© 2006-2008 StarAnchor |
|