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Funding (Preparing to raise debt or equity finacning (Sources of debt…
Funding
Preparing to raise debt or equity finacning
Step1: Determine how much money is needed
Step2: Determine the type of financing or funding
Step3: Develop a strategy for potential investors or bankers
Sources of debt finacning
Banks
Vendor credit
Factoring
Peer to peer landing
Crowdfunding
Creative sources of financing or funding
Leasing
Enables a company to aquire the use of assets with very little or no down payment
Grant programs
Enterprise Ireland
Strategic Partners
Another source of capital for new ventures
Case Studies
Tech Stars
Y Combinator
LetsBuyIT.com
Kickstarter
Why new ventures need funding
Cash flow challenges
Capital investments
Lengthy product development cycles
Sources of personal financing
Personal funds
Friends and family
Bootstrapping
Buying used instead of new equipment
Obtaining payments in advance
Buying items cheaply
Minimizing personal expense
Hiring interns
Sources of Equity Funding
Venture Capital
Limited partnerships of money managers who raise money in funds to invest in startups
Funds are raised from wealthy individuals, pension plans..
Business Angels
Invest their personal capital directly in start-ups
The prototypical business angel is about 50 years old
Initial public offerings
Raise equity capital to fund current and future operations
Raises a firms public profile
A liquidity event that provides a means for a companys investors to recoup their investments
creates a form of currency that can be used to grow the company
Elevator Speech