Segment 9 (18) Using External Capital Effectively

[Paul Terlemezian]

A few years ago I heard an investor ask an entrepreneur "What success have you had using other people's money?"

What a great question - and an important one!

What questions do you suggest someone seeking external capital be able to answer?

What suggestions do you have to assure that external capital is used effectively?

What is your definition of "Effective Use of External Capital?"

[David Ellis]

Paul, we should look for answers to your questions beyond the usual ones I advise namely, a strong management team, a growth proposition that is well differentiated from the competition, a great route to revenue generation and a good utilization of capital.

[Paul Terlemezian]

Thank you David - your response has immediate value via the adjectives you chose:

1. a strong management team,
2. a growth proposition that is well differentiated from the competition,
3. a great route to revenue generation and
4. a good utilization of capital.