In order to address the course learning objective. "...demonstrate your ability to develop measures of strategy implementation by 'identifying options for organizational structures and motivation systems', that fit the chosen strategies ..."

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In this chapter we discussed the need to fund a new business. If personal savings and bootstrapping efforts are insufficient to finance the business, entrepreneurs may turn to other sources of funds such as venture capital, which is a form of private equity financing.

Venture capital may be an important source of funding as well as managerial advice for new ventures. To obtain it, however, entrepreneurs must sell shares of ownership in their firm.

1. What are advantages and disadvantages of selling shares of ownership to venture capitalists?
2. Consider the idea of selling shares to other investors such as family, friends, or strategic partners. What are advantages and disadvantages of having these kinds of investors?