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Funding Options For Start Up Companies

Many starting out in business don't realize that that there are more than 20 funding sources available to get the money needed to fund a business vision, idea or project. The sources are broken down into two main groups, Bootstrapping and Equity Financing.

Bootstrapping is when you the Entrepreneur decide to go it alone using on the ground resources from personal savings to second mortgages. Equity Financing is when you the Entrepreneur decide to give up a percentage of the ownership of your company in exchange for needed capital.

Bootstrapping Early Sources:
1. Founders' Capital
2. Savings
3. Credit Cards
4. Second Mortgage
5. Venture Leasing
6. Sales Revenue

Bootstrapping Later Sources
1. Lines of Credit
2. SBA Loans
3. Asset Backed Lending / Accounts Receivable Factoring, etc
4. Corporate Strategic Partnerships
5. Banks that Lend To Start-Ups
6. Government Grants (e.g SBIR, DARPA)
7. Company Earnings

Under Equity Financing, depending on the source one may have to give up 25%-75% ownership of the company. This is usually depending on the nature of the deal and what can be negotiated. Under Equity Financing you must also be aware that there are Early and Later Stage Sources.

Equity Financing Early Sources
1. All Bootstrapping Early Sources
2. Friends & Family
3. Angels
4. Angel Groups
5. Early Stage Venture Capital Firms

Equity Financing Later Sources
1. All Bootstrapping Sources
2. Venture Capital Firms
3. Corporate Venture Funds
4. Private Equity Firms
5. Private Placement Firms
6. Mezzanine Financing Firms
7. Investment Banks
8. Public Markets

In order to make a sound financial decision make sure your Business Plan is strong and paints an accurate picture of your business idea or project. Proformas and Valuation of the business must be honest and realistic. Angel investors and Venture Capitalist are only going to back ideas and companies that are going to surrender the safest and strongest (ROI) return on their investment.

Want to learn THE SCIENCE OF MAKING MONEY and how to get Millions of Dollars in Angel Investor & Venture Capital Business Funding for all stages of Funding from a real Financier. Download the brand new free guide here: "Million Dollar Angel Investor & Venture Capital Funding Guide"

DH Roberts teaches a powerful, highly advanced system of making money and getting and using millions in business funding online and offline. An in demand Speaker, Angel Investor and Venture Capitalist he specializes in Funding early stage companies

Article Source: http://EzineArticles.com/?expert=Dh_Roberts

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