The first step for the former three employees of the ChipeX, Inc. is writing a vision and scope document to present to the proposed project stakeholders. Unfortunately, it is not always immediately obvious who those stakeholders are going to be. However, in this scenario the former employees have identified venture capitalists that are willing to receive whatever financing is needed to manufacture the chip, provided they take 51% of the ownership interest.
Venture capital is capital provided by outside investors for financing of new, growing or struggling businesses (Wikipedia, 2006). Venture capital investments generally are high risk investments but offer the potential for above average returns. Venture capitalists are people who make such investments. A venture capital fund is a pooled investment vehicle, which is often for a partnership, which primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans (Wikipedia, 2006).
The idea and vision of the "New ChipeX, Inc." should be:
1) Business Idea: to supply manufacturing businesses with the right competence, methods, technologies and development tools so that they them selves can develop new commercially successful new microchips to power the next generation of personal computers.
2) Vision: to begin manufacturing the chip within two years. Upon the success of the chip the expectation is within five years be a recognized expert institute in the area of product development and become a publicly traded company to be sold to investors.
The selection of the venture capitalists for the "New ChipeX, Inc." will be general partners who may be former chief executives at firms similar to those which the partnership funds ...