Fatal Flaws
Red flags that make potential financing sources think twice
Of the 800,000 or so new businesses that are formed each year, investment banker Robert Shuey of La Jolla Securities Corp. in Dallas says only a tiny fraction successfully raise outside capital.
A quick look at certain benchmarks would seem to bear this out. For instance, last year there were about 700 initial public offerings (IPOs)--a goodly number, but not when compared to the number of start-ups.
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