Lecture 1 / Module 1

The Entrepreneur

Introduction
Advantages of being an Entrepreneur

Making Your Own Rules Creating Greater Wealth Helping Your Community

Entrepreneurs help others

Depending on your A successful busines by providing products or s
business, you can de s, particularly one th ervices needed by the co
cide what type of sch at keeps growing, ca mmunity.
edule you work, whe n often be sold for m They also create jobs.
re you work, and how uch more than the a Entrepreneurs often gain p
and when you get pa ersonal satisfaction and co
mount that was inves
mmunity recognition from
id t in it. the time and money they d
onate to worthy causes.
Present - IKEA

When Kamprad was 17, he founded IKEA, a furniture bu

siness. Today, IKEA has expanded to 300 stores in over 3
5 countries and Ingvar Kamprad has become one of the
ten wealthiest people in the world.

Ingvar Kamprad
 Today’s Entrepreneurs

As in the past, present-day entrepreneurs pay attention to social trends to attract c

ustomers. To be successful in today’s business world, most entrepreneurs use the
Internet in some way. In fact, more and more companies are making the Internet t
heir primary business resource.

Amazon.com is a good example, doing its business entirely on the Internet.

 Types of Entrepreneurs

1. Small business 2. Home-Based Business

the primary factor in this case is that it's
This includes mom and pop shops and
run from home, as opposed to an office or
local business owners. Small business can other location. But just because a
include partnerships, sole proprietors, business is run from home, doesn't mean
and LLCs. Generally it's any business that
it can't compete with larger businesses. In
has less than 500 employees, according to fact, many large corporations were
the Small Business Administration. started from a home, including Apple and
Disney.
 3. Online Business 4. Inventors

For an inventor to be considered an

The key difference here is that the
entrepreneur, he needs to go beyond the
business is operated primarily online.
idea stage to build the product and get it
This includes companies like Amazon or
to market. A good example of inventors
other e-commerce businesses,
that transition to entrepreneurs are the
bloggers, Ebay etc..
contestants on Shark Tank.
 5. Serial Entrepreneur 6. Lifestyle Entrepreneur
Many entrepreneurs get the most joy out
of starting and building a business, but
not in its continued management, so they
sell it to launch a new idea. They are still A lifestyle entrepreneur is one that builds
considered entrepreneurs because they a business that incorporates their
operate and assume risk in the business interests and passions, and sustains their
for the time they own it. Other times, life goals.
serial entrepreneurs juggle several
businesses at once, earning multiple
streams of income.
Vision
It helps to know your end goal when yo
u start. Further, vision is the fuel that pr
Characteristics
opels you forward toward your goal. Tenacity
Following your passion is one of the
Passion best predictors of success.
Following your passion is one of the
best predictors of success. Self-confidence
They believe they can achieve the
Independent thinking ir goal.
Often think outside the box and aren'
t swayed by others who might questi
Resourceful and problem solvers
on their ideas.
They never let problems and challen
ges get in the way, and instead find w
Optimism ays to achieve success .
Entrepreneurs are dreamers and believ .
e their ideas are possible, even when th
Focus
ey seem unattainable.
Successful entrepreneurs are focuse
Action oriented d on what will bring results.
They overcome challenges and avoid p
rocrastination.
How to Become an Entrepreneur

One of the great things about becoming a

n entrepreneur is that anyone can do it.

1 2
Becoming an entreprene
Development of the characteristics A great idea that people will pay
ur isn't hard, but it is wor of a Successful Entrepreneur money for
k and requires many ste “mentioned in the previous slides”
ps
including:

4 3
A plan of success Consistent execution of the plan
Entrepreneurial Ecosystem
MARKETS
▪ Markets and market access provides opportunities
for proof of concept, sales and
distribution. Customers include both domestic and
foreign markets, companies large and small, and
government contracts.
CULTURE & MEDIA
▪ Culture beliefs influence acceptance and
promotion of entrepreneurs and the
entrepreneurship ecosystem. Success stories and
role models should be promoted by influential
leaders through media and social media channels.
HUMAN CAPITAL
▪ Human Capital in the form of experienced
managerial and technical talent is required to
ensure entrepreneurial success. Training institutions
and outsourcing support should respond to growing
needs for skills in the marketplace.
LEADERSHIP & POLICY
▪ Leadership and Policy provides strategy and legitimacy
to entrepreneurs and the entrepreneurship ecosystem
through promotion and support, problem solving and
venture friendly legislation and incentives.
FINANCES
▪ Finance provides the fuel for early stage and growth
oriented startups and growth of the entrepreneurship
ecosystem through access to micro loans, angel investors,
and venture capital. Support is needed for capital raise
preparation and pitch opportunities.
SUPPORT SERVICES
▪ Support Systems should include a wide range of
support infrastructure (energy, telecom, transport) and
entrepreneurship networks and networking platforms
and events. Experienced coaches and mentors and
professional support services help ensure success.
BOOTSTRAPPING ( FINANCE )
▪ What Is Bootstrapping?
▪ Bootstrapping describes a situation in which an entrepreneur starts a
company with little capital, relying on money other than outside
investments. An individual is said to be bootstrapping when they
attempt to found and build a company from personal finances or the
operating revenues of the new company. Bootstrapping also
describes a procedure used to calculate the zero-coupon yield
curve from market figures.
BOOTSTRAPPING ( FINANCE)
• Bootstrapping is founding and running a company using only personal
finances or operating revenue.
• This form of financing allows the entrepreneur to maintain more control, but
it also can increase financial strain.
• Owners can bootstrap by cutting costs, personally financing operations,
cutting back operations, or looking for other creative short-term financing
solutions.
• The term also refers to a method of building the yield curve for certain bonds.
• GoPro, Facebook, and Amazon are examples of companies with humble
beginnings and bootstrapped starts.
SERIES FUNDING
▪ Series A, B, and C are funding
rounds that generally follow "seed
funding" and "angel investing,"
providing outside investors the
opportunity to invest cash in a
growing company in exchange
for equity or partial ownership.
Series A, B, and C funding rounds
are each separate fund-raising
occurrences. The terms come from
the series of stock being issued by
the capital-seeking company.
 WHAT IS FUNDING VALUATION
Before any round of funding begins, analysts undertake a valuation of the company in
question. Valuations are derived from many factors, including management, growth
expectation, projections, capital structure, market size, and risk. Investors each have their
own method for valuating a business, but many use some of the same factors:
• Market size: The size of the market the business is in, in dollar value
• Market share: How much of the market the business makes up, like 0.10% of the overall
market
• Revenue: An estimate of how much the company made and will make. This is market
size multiplied by market share.
• Multiple: Generally an estimate used by the investor to give them an idea of the
business's value, like 10x or 12x the revenue
• Return: The increase in value, in percent form of how much is invested, based on
estimates of growth in market share, market size, and revenue.
PRE-SEED FUNDING
▪ The earliest stage of funding a new
company comes so early in the
process that it is not generally
included in the funding rounds.
▪ Known as "pre-seed" funding, this
stage typically refers to when a
company's founders get their
operations off the ground. The most
common "pre-seed" funders are the
founders, close friends, supporters,
and family.
SEED FUNDING
▪ Seed funding is the first official equity funding stage. It typically represents
the first official money a business venture or enterprise raises. Some
companies never extend beyond seed funding into Series A rounds or
beyond.

▪ Seed funding helps a company finance its first steps, including market
research and product development. With seed funding, a company has
assistance in determining what its final products will be and who its target
demographic is. Seed funding is generally used to employ a founding team to
complete these tasks.
SERIES A FUNDING
▪ The first round after the seed stage is Series A funding. The term gets its
name from the preferred stock sold to investors at this stage. In this round,
it's important to have a plan for developing a business model that will
generate long-term profit.
▪ Typically, Series A rounds raise between $2 million and $15 million, but this
number varies due to many circumstances. From Jan. 1, 2023, to May 29,
2023, the Series A funding average was $22 million
▪ In Series A funding, investors are not just looking for great ideas. Rather, they
are looking for companies with great ideas and a strong strategy for turning
that idea into a successful, money-making business.
SERIES B FUNDING
▪ Series B rounds are about taking businesses to the next level, past
the development stage. Investors help startups get there by expanding market
reach. Companies that have gone through seed and Series A funding rounds have
already developed substantial user bases and have proven to investors that they
are prepared for success on a larger scale. Series B funding is used to grow the
company so that it can meet these levels of demand.

▪ Series B appears similar to Series A regarding the processes and key players. Series
B is often led by many of the same characters as the earlier round, including a key
anchor investor that helps to draw in other investors. The difference with Series B
is the addition of a new wave of other venture capital firms specializing in later-
stage investing.
SERIES C FUNDING
▪ Businesses that raise Series C funding are already quite successful. These
companies look for additional funding to help them develop new products,
expand into new markets, or even acquire other companies. In Series C rounds,
investors inject capital into successful businesses in an effort to receive more
than double that amount back. Series C funding focuses on scaling the company,
growing as quickly and successfully as possible.
▪ In Series C, groups such as hedge funds, investment banks, private equity firms,
and large secondary market groups accompany the type of investors mentioned
above. The reason for this is that the company has already proven itself to have a
successful business model; these new investors come to the table expecting to
invest significant sums of money into companies that are already thriving as a
means of helping to secure their own position as business leaders.
THANK YOU