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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

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© Fort Hays State University

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