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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