deferment of payment for products/services
Is a financial transaction whereby a business sells its accounts receivable to a third party, at a discount in exchange for cash
Peer to peer lending
Why most new ventures need funding?
Cash Flow Challenges
Lengthy Product Development Cycles
Money invested by venture capital firms and small business with exceptional growth potential.
Venture capital firms are limited partnerships of money managers who raise money in “funds” to invest in start-ups and growing firms
The funds, are raised from wealthy individuals, pension plans, university endowments, foreign investors, and similar sources.
Fund very few entrepreneurial firms
Individuals who invest personal capital directly in start-ups
Valuable because of willingness to make relatively small investments €50,000 - €250,000 in a single company
Look for companies with potential growth between 30%-40% per year
Eg: Halo Business Angel Partnership
Initial Public offerings
is a company's first sale of stock to the public
after going public, its stock is traded on one of the major stock exchanges
Typically, a firm is not able to go public until it has demonstrated that it is viable and has a bright future.
a way to raise equity capital
Creative sources eg bootstrapping