Chapter 8

Capital and Capital Sources

Abstract

All new ventures need some cash resources to start. Technology ventures are no exception. In fact, some types of technology ventures require more capital than any other kind of venture. For example, Tesla Motors required a huge outlay of original capital to begin building its brand of electric vehicles. On the other hand, some technology ventures can be launched with very little capital. Successful technology ventures such as Dropbox and Airbnb were launched via the technology accelerator Ycombinator with less than $30 thousand of investor capital. Various sources of capital are available to the technology entrepreneur. Capital needs change over time and must be managed. A number of factors need ...

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