Raising Funds for Startups, Essay Example

In Chapter 8, “Greenacres”, Browder  (2015) talks about how he managed to raise funds for his hedge fund to invest in the growing market of Russia, and how he overcame initial hurdles and difficulties. The author, showing his determination and motivation teaches readers that taking the first step at the right time is the most important part of becoming an entrepreneur.

The author describes how he left the corporate world to start his own enterprise, and the difficulties he had to face. He had no funding, and limited social capital to build on. However, he was determined and sure that his idea of investing in Russia was going to work, so he did everything he could. First, he came across investors who were cautious, and only wanted to invest if he could secure a finance of at least 25 million dollars. When he met Burkle, he thought that he finally found a person who was ready to invest, but he later found out that the finance was not secure. Instead of giving in and settling for less than he expected, he gave his favored financier another call, letting them know that there was another potential investor competing for signing the deal for him. This decision might have been risky, but was bold, well thought out, and worked as well. He got Beny and Safra to commit to investing in his idea, provide him support setting up the business and infrastructure, and got to work with people he could fully trust. The later conversation with Burkle confirmed that he was right not to accept the offer, and not to give the investor a “free option on 50 percent” (Browder, 2015, p. 82) of his business, as the investor became aggressive and threatened him with a lawsuit.

From the chapter, the readers can learn how to assess difficult situations, overcome barriers of setting up a business, and not to settle for less than what is necessary for success.

References

Browder, Bill. (2015)  Red Notice. Bantam Press.