1 / 13

Financing your Venture Ways to Raise Capital

Financing your Venture Ways to Raise Capital. Financials…What Next?. You have decided on your target market and have determined your market share. Now you can determine your financial goal by basically multiplying units by share of the market (customers)

wang-maxwell
Download Presentation

Financing your Venture Ways to Raise Capital

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Financing your VentureWays to Raise Capital

  2. Financials…What Next? • You have decided on your target market and have determined your market share. • Now you can determine your financial goal by basically multiplying units by share of the market (customers) • You also had to determine your start-up costs. What do you require by way of infrastructure? • Where will the money come from?

  3. The secret to startup success is not to tap into the best source of capital, but rather to tap into every source of capital.Michael Dell

  4. Getting Capital • Personal Savings • Friends and Family • Debt Financing • Government Agencies (ACOA) • Partnerships (Gourmet Burgers) • Angel Capital • Equity Financing (Dragons Den) • Venture Capitalists

  5. Personal Savings • Using personal savings can be a huge sacrifice , but conveys a high level of confidence in the business. • Personal savings allow the owner to remain in control of profits and decision making.

  6. Angel Capital “Angel Investors” are typically entrepreneurs themselves. They differ from venture capitalists in that they are investing their own hard-earned money into your company rather than that of institutional investors. They typically invest upwards of $25,000 all the way to $500,000.

  7. Equity Financing • Investors receive some ownership in the venture in exchange for financial contributions. • Equity financing can also come from friends, partners and relatives, again in exchange for shares or part ownership.

  8. Venture Capitalists • Similar to Angel Investors but VCs are private companies or owners even banking/financial companies. • VCs can ask for 25% return or even more. • VCs will want a detailed plan, involve their own financial advisors, but bring good advise and planning.

  9. Friends and Family • ‘love Money” can be a great source because these people most likely believe in the venture and can give flexible debt repayment. • Positional disadvantage is hurt and strain in the venture fails. • (share holders agreements help, as well as regular reporting)

  10. Partnerships • 2 or more form partnerships. Each may contribute finances. • A written agreement will be essential for all involved. • Partnerships often receive higher credit ratings if more capital is needed.

  11. Debt Financing • Money borrowed to finance the venture. • Whether for start up, improvements, or to finance growth. Money paid back over time. • This is money from institutions like banks, shop for lowest rate. • Best rates go to those with highest debt to equity ratio

  12. Government Agencies • ACOA lend money to venture plans because these have the potential to create jobs, develop new technologies, help the country compete in the foreign markets. • Money, advice and “matchmaking services”

  13. Review • The secret to startup success is not to tap into the best source of capital, but rather to tap into every source of capital.Michael Dell • Which sources best fit the needs of your business plan?

More Related