Page 81 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.71, # 2, 2014, pp. 81-93

MODERN VENTURE FINANCING OPTIONS IN THE U.S.A.

Ali Yashar Abbasov

master, MBA in Finance at Park University

Program maneger in MBA Program, MBA Department,

Azerbaijan State University of Economics
Mobile tel.: (+994 55) 759 90 35

E-mail: [email protected]
Received 15 September 2014; accepted 18 December 2014; published online 25 December 2014

Abstract

This article involves discovering the prospective financing option in the United States of

America. The main objective is to show how start-ups as well as the operating companies can

obtain much needed capital sources in today’s high competitive economic world. The article

looks at self- financing, personal assets, retirement plans, entrepreneurs’ assets as a way of

getting financed and discusses the advantages and disadvantages of the options. This article will

identify which financing options are most relevant at different stages of the firms.

Key words: venture financing, self-finance, investment, entrepreneur, business angels

JEL Classification Codes: G24

In the journey of starting a new business, every entrepreneur starts out in the same place:

with an idea and a dream. The next step on the road to business success is figuring out where the

money will come from to fund it. Self–financing is the number one financing method used

during the early life cycle stages. The advantage of self –financing is it gives full control to

entrepreneur over business (Cornwall J. 2008). It also shows bankers, lenders and investors that

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