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Equity Financing FAQs

Startups to IPO: Funding Roadmap

Startups to IPO: Funding Roadmap

Capital raising has always been a challenging task for entrepreneurs, more so when it comes from venture and angel funds, who unlike banks do not judge your business funding on the physical and liquid asset one owns. As the start-up ecosystem fosters and more ventures emerge, the mortality rate of companies that could not sustain has also risen. While getting the initial investor is the toughest part, a lot of big ticket fund raises in the past two years have ...

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Venture Capital vs. Private Equity: Understanding The Difference

Venture Capital vs. Private Equity: Understanding The Difference

With increasing coverage and interest in startups, fundraising and venture capital, many terms have become more ambiguous than ever. That can leave entrepreneurs pretty foggy on how they should really be approaching raising money. So, who is funding what? Why does it matter so much if you are launching or trying to scale a venture? Startup Fundraising Whether you are still juggling a startup idea or already have data and revenues and are ready to scale, it’s vital to understand ...

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Feedback from Investors

Investors are drowning in “normal” deal flow, deals which look good but not great. They want to find the anomalies and things which are an excellent fit for them. Here are some takeaways on why less is not only more but all that matters in some cases: 1) Your one-pager is more important than your pitch deck because without it being excellent nobody will open the pitch deck. If you believe that, then it goes in line that the one-liner on ...

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The KPIs of Raising Capital

The best tool that we have found for managing business partners, joint ventures, and team members are Key Performance Indicators (KPIs). A KPI is a measure of an action or activity which lets you know if work is getting done, if that work is leading to results, and what the yield is on the time invested in that activity. In capital raising, you will want to have different types of KPIs in place, with some activity-based and some results-based. These ...

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Crowdfunding, venture capital, angel investing?

Crowdfunding, venture capital, angel investing – there seem to be so many different ways to get funding for my business. Which one is best and are there any downsides to letting other people own a share of my company? Eleanor Lawrie of This is Money replies: You could feel like a kid in a sweet shop when it comes to the different forms of investment on offer for your small business. But while the offer of ‘free money’ may sound tempting, ...

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Frequently Asked Questions about Raising Investment Capital

What Is Investment Capital? Investment capital is money investors, such as venture capitalists and/or business angels, provide companies to help grow or expand their firms. How Will Investment Capital Help My Company? The money can be used to finance the startup of a new company, finance the development of a proposed new product, finance the commercialization of a consumer tested product and finance the acquisition of an existing business. What Does An Investor Want for Providing the Money? Investors are ...

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9 Tips to get funded by Angel Investors

Contents You should create a business plan that emphasizes your sustainable competitive advantage. You should accept the fact that having “a good idea” is often not enough to raise capital from private investors, and you should do your homework to provide “proof of concept” for your venture. You should understand that raising capital requires an expenditure of capital. You should identify and contact angels who are suitable for you. You should recognize that industry experience is valuable and important to ...

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Why Investors Aren’t Calling You Back

Entrepreneurs are constantly befuddled by how an investor would choose one deal over another to review or invest in. The refrain pretty much looks like this: “What?! How can that investor possibly invest in {Insert Undeserving Name} when my company is far more attractive?” The truth is there are lots of potential reasons for these decisions, but it’s important to understand what the landscape looks like, and how your deal stacks up to others. It’s Kind Of like a Dating ...

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Equity Financing Stages for Startups

It is rarely possible for startups to raise sufficient capital to kick-start their operations, launch products and break even. Although a ‘one-time investment’ strategy is theoretically possible, it is hard to cite examples of any successful startup that has gone this route. Moreover, most angel investors and venture capitalists prefer to fund startups in steps. This practice helps investors assess the value of the company and minimize the startup risk. Therefore, entrepreneurs should articulate their investment requirements, while keeping in ...

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