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  • October 2013 (Revised April 2018)
  • Technical Note
  • HBS Case Collection

Non-Equity Financing for Entrepreneurial Ventures

By: Joan Farre-Mensa, Ramana Nanda and Piyush Jain
  • Format:Print
  • | Language:English
  • | Pages:16
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Abstract

Young, and particularly high-growth ventures often need to raise significant external finance, since their internal cash flow is usually insufficient to support the investments needed to grow. Although raising equity from venture capital or angel investors is the most well-known source of external finance for high-growth ventures, many entrepreneurs, particularly small business owners, rely on debt and other non-equity sources of capital to finance their ventures, either because equity capital is not available to them or because they want to avoid the ownership dilution and governance constraints associated with equity investments.

This note focuses on these non-equity sources of financing for entrepreneurs, paying particular attention to how the emergence of new technologies in risk assessment have expanded their availability for young firms.

Keywords

Entrepreneurial Finance; Entrepreneurship; Finance; Financial Services Industry

Citation

Farre-Mensa, Joan, Ramana Nanda, and Piyush Jain. "Non-Equity Financing for Entrepreneurial Ventures." Harvard Business School Technical Note 814-005, October 2013. (Revised April 2018.)
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About The Author

Ramana Nanda

Entrepreneurial Management
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Related Work

    • October 2013 (Revised April 2018)
    • Faculty Research

    Non-Equity Financing for Entrepreneurial Ventures

    By: Joan Farre-Mensa, Ramana Nanda and Piyush Jain
Related Work
  • Non-Equity Financing for Entrepreneurial Ventures By: Joan Farre-Mensa, Ramana Nanda and Piyush Jain
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