Review, Evaluation & Analysis of a case study Essay

Review, Evaluation & Analysis of a case study - Essay Example However, Rosen (1998) emphasizes the importance of initial finance in ventures of small businesses. On the other hand, Santarelli& Vivarelli (2006) found a positive correlation between the choice of financing and the growth and survival of a venture. This paper explores the role of entrepreneurial finance in the entrepreneurial life cycle. According to Leach & Melicher (2003), the early phases of the entrepreneurship life cycle, the venture exhibits undercapitalization and in effect the entrepreneur must grab the different sources of capital. Mason (2007) discusses the role of informal sources of finances, which are often ignored in class room environment, but have significant role in the entrepreneurial life cycle. According to Preston (2007), angel investors are high net worth persons who inject funds in the early stage companies. Reminiscent of an American program, Shark Tank, that features high net worth individuals who are looking for investment opportunities in television. Kerr, Lerner & Schoar (2010) found out that angel investments improve entrepreneurial success. These opportunities for tapping capital at such early stages must occur as the venture progresses from startup through the survival stage. The major objective of the entrepreneurial finance is to assist the entrepreneurs through the life cycle of the venture to continually make better investment and financing decisions. The process covers the entire venture life cycle from startup to exit and inquires into issues such as deal structures, incentives, business models and valuation to a greater degree than normal equity management. Winton & Yerramilli (2008) in a comparison between bank and venture capital financing delved into the metrics of the choice between these two methods of financing a venture. According to N Berger & F Udell (1998), entrepreneurial finance plays an important role in small business as opposed to the large business. The small