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Funding/Business Supports (Alternatives for raising money (Personal…
Funding/Business Supports
Importance
New venture need funding
The Nature of the Funding and Financing Process
Why it's needed
Cash flow challenges
Capital investment
Long product development cycles
Alternatives for raising money
Equity Capital
Sources
Business Angels
Individuals who invest their personal capital directly in start-ups
Initial Public Offerings
A company’s first sale of stock to the public
Venture Capital
Money that is invested by venture capital firms in start-ups and small businesses with exceptional growth potential
Debt financing
Sources
Vendor Credit
Factoring
Crowdfunding
peer-to-peer lending
Banks
Personal financing
Personal funds
Friends & Family
Bootstrapping
Creative sources
Leasing
Strategic Partners
Grant Programs
Bootstrapping
Definition
Find ways to avoid the need for external financing or funding through any means necessary
Methods
Share office space
Obtain payments in advance
Lease equipment
coordinate purchases
Avoid unnecessary expenses
Hiring interns
Buying used equipment
Minimize personal expenses
Buy items cheaply but
prudently
Elevator Speech
Duration
45 seconds to 2 minutes
Preparation steps
1.Describe opportunity/problem
2.Describe how your product/service is the solution
3.Describe your qualifications
4.Describe your market
Purpose
To outline to merits of the business opportunity