Chapter 8. Financing an SEU Venture

Equation for Growth: Moving Big Company Risk Capital to SEU

Big companies have money. Lots of money. In fact, large, publicly traded organizations have the cheapest capital of any company on the planet—by far. Inexpensive capital may be their single most significant comparative advantage over small companies. It’s a shame that they frequently squander it on items that don’t help them grow stronger.

Fortune 500 companies have public stock, public debt, collateralized debt, debt with enhanced credit ratings, supplier financing, and in a few situations, commercial paper (short-term debt issued directly to the investor). This means large companies, in addition to all of their advantages with manufacturing economies ...

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