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MAGIC TOUCH CONFERENCE Raising Start-up Capital. The Different Avenues Chapter 2. Learning Objectives. At the completion of this session, you should be able to: Positively exploit the different sources of capital available to you. Definitions. What is a Start-up Capital?
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MAGIC TOUCH CONFERENCE Raising Start-up Capital The Different AvenuesChapter 2
Learning Objectives At the completion of this session, you should be able to: • Positively exploit the different sources of capital available to you.
Definitions • What is a Start-up Capital? • also known as seen money, it is money required to start up a new business.
The Different Sources of Capital • Your Own/Company’s cash • Equity • Debts • Convertible Notes • Grants /Start-up Competitions
Your Own/Company’s cash • Savings, Salary, positive cash flow • Minimizing Salary Expenses • Keeping your day job • Positive Chas flow form an existing company.
Equity • This involves exchanging shares for money. • Equity capital is typically raised via numerous rounds of financing based on the company’s development stage and needs.
Debt • This involves receiving a loan that must be paid back with a specific period of time. • It could sometimes attract interest. • And could be very attractive for founders who wish to maintain ownership of their companies
Convertible Notes • investors loan money to a startup and instead of expecting the money back with interest, they receive shares in the company at a discounted rate..
Grants & Start-up Competitions • This is usually a great way to raise start-up capital since money is provided free of charge. • Winning a startup competition not only enhances a company’s credentials and publicity, but also provides a decent source of capital
Other Sources of capital • Open discussion
The End Thank You for your time