Entrepreneur- Investor Negotiations: Investigating The Power Gap

Authors

Karen Page, University of Wyoming
Robert Sprague, University of Wyoming

Abstract

Federal Securities Laws are designed to ensure that investors are provided with sufficient information to make an informed investment. These Laws presume that investors are relatively naive and powerless compared to the relatively sophisticated and powerful sellers of securities. In the new venture arena, however, it is often the case that sellers, the entrepreneurs, are relatively naive and powerless compared to the investors, who tend to be expert in venture finance. This paper explores these heretofore unexamined power imbalances and presents attributes of the entrepreneurs and their resources that may affect entrepreneurs' ability to negotiate with venture capitalists.

Volume

2

Issue

1

First Page

46

Last Page

53

DOI

10.58809/ILCE6349

Comments

For questions contact ScholarsRepository@fhsu.edu

Rights

© Fort Hays State University

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Recommended Citation

Page, Karen and Sprague, Robert (2006) "Entrepreneur- Investor Negotiations: Investigating The Power Gap," Journal of Business & Leadership: Research, Practice, and Teaching (2005-2012): Vol. 2: No. 1, Article 7.
DOI: 10.58809/ILCE6349
Available at: https://scholars.fhsu.edu/jbl/vol2/iss1/7