Venture Funding Options

Raising Startup Money ? Want to maximize $ ?

20 Ways to fund a business -

1. Credit cards - this is typically in the range of $10k - $30k.
2. Suppliers - establish terms, slow down payments, or seek deferred payments.
3. Take out a mortgage - shows Founder has significant belief in what he or she is doing.
4. Wealthy relatives - with the ability to invest typically between $10,000. to $250,000.
5. Friends & Bus. Partners - with a funding ability as above, plus those with business experience can be on BoD, BoA, etc.
6. Consulting - even if it means the company needs to be both a consulting and product development business at first.
7. Affiliate with an Incubator - whether physical or virtual to help build the management team, provide business insights, etc.
8. Well-connected Business, Lawyer, Accountant or other Professional person - for advise, experience and referrals.
9. Interim / Part-Time CFO - to set up financial systems, do business analysis, collect the money, and add credibility.
10. Full Time CFO - to address financial issues, increase Angel / Investor comfort, and help establish the venture as a real business.
11. Get money up front - includes prepaid licenses, down payments on services as well as product, prepaid maintenance fees, advance invoicing of recurring revenue and custom engineering / product development, etc.
12. Accelerated payments / Discounts for fast payment - when the company has a revenue stream.
13. Royalties for specific projects - to fund product development + seek out anyone that can benefit from the technology (not just your main target Customers).
14. Angel financing - when you can demonstrate a need being addressed, confirm value delivered, to achieve a significant milestone …. when the funding requirement is in the range of $100,000. to $2,000,000.

15. Bank line of credit - typically can be arranged from $50k to $250k.
16. Strategic Partnerships - with a Customer or Supplier, with a complimenting business for development, distribution, etc.

17. Venture Capital - when the business has Mgmt, Customers, validated the business model, etc. and needs $5M to $10M
18. Private Placements / Investment Bank - similar to above
19. Public Offering / CPC - similar to above but usually looking for + $10M

20. Merger & Acquisition / Professional Restructurers - when the business is well established and needs to move to a new level

NOV. 27, 2007