Abstract
Affordit, a fintech startup, was raising private equity and needed to choose between raising capital from a venture capital firm or from business angels through a private placement memorandum. Accepting the terms from a venture capital firm would allow the founder to focus on running Affordit. Raising equity through a private placement would be more time intensive, as it required building a network of accredited investors aligned with founder's vision for growth. The case offers students an opportunity to compare the terms of a private placement memorandum to a venture capital term sheet for an early-stage, high growth company.
Recommended Citation
(2026)
"Affordit Raises Private Equity: The Choice Between Venture Capitalists or Business Angels,"
Journal of Economics and Finance Education: Vol. 21:
Iss.
1, Article 4.
Available at:
https://scholarship.rollins.edu/jefe/vol21/iss1/4
