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Definition

There’s no question you will need capital to launch your business. Whether your capital requirements are manageable is another question. Note that the penalty for having non-manageable capital requirements, assuming that you plow ahead, is time. It just takes longer to find the right source, conform the deal to their needs, make the case, and close. Note, though, that raising $100 million is a different challenge from raising $6 million. It is not likely that the venture investment community will bet $100 million on a new venture without extraordinary reassurance that the value will someday return home. Furthermore, $100 million is likely to easily exceed one of the principles of the investor—avoiding placing too many dollars into one basket. Large investment requirements are normally syndicated or spread amongst several investment pools.


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