What do investors believe to be the best financing method or structure?
Investors report no single best method or structure, because a range of appropriate methods or structures exists. A deal structure becomes appropriate when the entrepreneur properly targets the investor. Too often entrepreneurs, convinced that they have an extraordinary deal the next Apple Computer, for instance approach venture capitalists, failing to grasp how slim the possibility is that they will be interested. Venture capitalists need to invest in national companies, companies with the potential to be very large businesses that will eventually go public. Professional venture capitalists are essentially portfolio managers, with a unique set of pressures. They have to raise their next fund; they have to invest the money under their management; they are responsible to overseers. None of this operates with the private investor. However, once the entrepreneur is on target, the private placement the placement of treasury securities with a small number of private investors has certainly
