Question

Samantha Smith, a friend of yours, was recently telling you about a company that her father is starting in the solar power industry. Samantha’s father is using a technology he developed, which has received favorable write-ups in several technical publications. He has been approached by two angel investors who are eager to invest in his proposed venture. He’s also been offered a spot in a prestigious technology incubator, where he can maintain an office and a lab to work on his project. Samantha says that her dad has turned away the potential investors and is opting to work out of a shop on some property he owns, rather than move into the incubator. He’ll be able to fund the company from personal savings, at least for the first two years. Do you think Samantha’s dad is making good decisions? What are the pluses and minuses of his decisions?

Answer 1

According to the given situation, yes S dad is making good decisions and for any kind of frim the funds that are internal should be first utilized as a personal financing sources

Pluses points of his decisions

1. As the best source of personal financing is to do the internal funding

Minus points of his decisions:

1. This is not a right way to lose the investors as in the future there is a need for the investors in case when the funds are not available that results in difficulty to complete the project on time.