Why Innovation thrives in U.S.

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Innovation =>↑ full potential

Raising Money for New Ideas

How innovation happens in the USA

Innovation & USA

• Financial Capital is needed to start a new businesses– Without money => ideas can’t become reality

• Ideas for a new business easily raise money in USA– Google, Apple, Microsoft, Facebook, Bloomenergy etc…

Step #1: Start with money from friends, family & fools

Typical path to start a Company

Step #2: Raises more financial capital from angel investors

Step #3: Sell some of business to venture capital firms

Step #4: Grow business & launch Initial Public Offering (IPO)

Venture Capital Firms (VCs)

• Investment Funds which “lends” money to select startup companies with high growth potential

• The VC gives money in exchange for partial ownership– stock options in company

• VC often has a say in Management

IPO’s

• Transforms a company from private to public– Stock is publicly traded

• New corporate rules apply– Must report earnings every 3 months

– Inside information rules apply

Recent IPO’s

IPO

Company was overvalued•3rd largest IPO ($16 billion raised)

Sold at : 104 billion market capitalization 100 PE ratio

Zuckerberg owns 24% CompanyControls 56% of voting stock

New Option: Crowdfunding

• Movie which follows an actual start of a dot.com company

Movie

Top 10 Lessons from Movie