8

Anatomy of a Venture Funding

John Vinturella and Suzanne Erickson

Case 8.1 New Tech (K): Finding Compatible Investors

With the investment proposal nearing completion, New Tech must now identify potential investors. Where to start?

Stuart Chip, New Tech’s CEO, calls Grant Argent, New Tech’s financial advisor, for a meeting with in-house accountant Elizabeth Pratt and himself. Grant explains that there are different categories of investors: angel investors, institutional investors, venture capital firms, labor-sponsored venture funds, government-backed corporations such as the Business Development Bank of Canada. Each investor has investment preferences, making some more attractive than others.

Grant emphasizes that it is critical to ensure that ...

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