FINANCIAL MARKETS+INST (LL)-W/ACCESS
7th Edition
ISBN: 9781265319434
Author: SAUNDERS
Publisher: MCG
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Chapter 20, Problem 3P
Summary Introduction
To determine: The W sports shop’s cash flow from operations for 2018.
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QUESTION 1
Examine the information provided below and answer the following question.
(10 MARKS)
The hockey stick model of start-up financing, illustrated by the diagram below, has received a lot of attention in the
entrepreneurial finance literature (Cumming & Johan, 2013; Kaplan & Strömberg, 2014; Gompers & Lerner, 2020). The model
is often used to describe the typical funding and growth trajectory of many startups. The model emphasizes three main
stages, each of which reflects a different phase of growth, risk, and funding expectations.
Entrepreneur, 3 F's
Debt(banks & microfinance)
Research Business angels/Angel Venture funds/Venture capitalists
Merger, Acquisition
Grants
investors
PO
Public market
Growth (revenue)
Break even
point
Pide
1st round
Expansion
2nd round
3rd round
Research
commercial idea
Pre-seed
Initial concept
Seed
Early
Expansion
Financial stage
Late
IPO
Inception and
prototype
Figure 1. The hockey stick model of start-up financing (Lasrado & Lugmayr, 2013)
REQUIRED:…
critically discuss the hockey stick model of a start-up financing. In your response, explain the model and discibe its three main stages, highlighting the key characteristics of each stage in terms of growth, risk, and funding expectations.
Solve this problem please .
Chapter 20 Solutions
FINANCIAL MARKETS+INST (LL)-W/ACCESS
Ch. 20 - Prob. 1DYUCh. 20 - Prob. 2DYUCh. 20 - Prob. 3DYUCh. 20 - Prob. 4DYUCh. 20 - Prob. 5DYUCh. 20 - Prob. 6DYUCh. 20 - Prob. 7DYUCh. 20 - Prob. 8DYUCh. 20 - Prob. 9DYUCh. 20 - Prob. 1Q
Ch. 20 - Prob. 2QCh. 20 - Prob. 3QCh. 20 - Prob. 4QCh. 20 - Prob. 5QCh. 20 - Prob. 6QCh. 20 - Prob. 7QCh. 20 - Prob. 8QCh. 20 - Prob. 9QCh. 20 - Prob. 10QCh. 20 - Prob. 11QCh. 20 - Prob. 12QCh. 20 - Prob. 13QCh. 20 - Prob. 14QCh. 20 - Prob. 15QCh. 20 - Prob. 16QCh. 20 - Prob. 1PCh. 20 - Prob. 2PCh. 20 - Prob. 3PCh. 20 - Prob. 4PCh. 20 - Prob. 5PCh. 20 - Prob. 6PCh. 20 - Prob. 7PCh. 20 - Prob. 8PCh. 20 - Prob. 9PCh. 20 - The following is ABC Inc.’s balance sheet (in...Ch. 20 - Prob. 11PCh. 20 - Prob. 12PCh. 20 - Prob. 13PCh. 20 - Prob. 14PCh. 20 - Prob. 15P
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