Chapter Nine Summary

Many entrepreneurs are always convinced that they are the only one who holds the success of the company because they have a vision to build a great company. Holding the vision for the company to them comes with the belief that they should be the only ones running it. Although there is some degree of truth to this statement because the founder has an idea of what kind of partners he wants, what kinds of opportunities he should be bringing to the business, what kinds of innovative products they should be creating and who their potential clients are. This information alone is not enough for running the business as discussed in the previous chapters of this book. Chapter nine of this book goes beyond what goes in the mind of the founder. Chapter nine breaks down the existing dilemmas in the group of investors.

Investors are individuals who provide a business with financial, social and human capital that is needed not only for a startup but for running the business as well. This chapter breaks down the different investor types as well as the different amounts and value they introduce to the business. With the capital support the investors come with, chapter nine of this book also takes us through the different that stakeholders come with. The author brings us to a higher level of comparison when he compared the tradeoff of entrepreneurs borrowing money from angel investor, friends and family and venture capitalists. Apart from looking at the founding team issues, this chapter goes ahead and looks at the issues of capital and finances as well as the risks that come as a result of bringing investors into the company’s scale.