Capital matters.QA Can you tell me what's the best source of financing for a startup company The creator of this article, or someone who has substantially contributed to it, may have a conflict of interest regarding its subject matter. It may require cleanup to comply with Wikipedia's content policies, particularly neutral point of view. and what's the difference between a venture capitalist Venture Capitalist An investor who provides capital to either start-up ventures or support small companies who wish to expand but do not have access to public funding. Notes: Venture capitalists usually expect higher returns for the additional risks taken. and an angel investor An individual who invests his or her own money in a private company, which is typically a startup. An angel investor is not an employee or member of a bank, venture capital firm or other financial institution that normally makes such investments. ? --Via the Internet There really is no "best" financing source for startups, All have their pros and cons pros and cons Noun, pl the advantages and disadvantages of a situation [Latin pro for + con(tra) against] . One thing you need to understand is what stage your company is in. You say you need financing but you'll have to keep in mind that the stage you're in will determine the kind of financing you need. From your letter, it seems like you are in the first stage and need seed capital rather than startup, * Seed capital is used in the initial research and planning stage of your business. * Startup capital is for operating expenses--equipment, rent, supplies, etc., for the first year or so. * Expansion capital is when your company is ready to purchase bigger and better equipment, move to a larger facility, or hire additional employees, * Bridge capital closes the gap between your current financing and the next level of financing. To answer your other question, a venture capitalist is a professional investor who manages a fund and is looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. suitable investments. An angel investor is an individual who, while looking for a suitable investment, is also looking for a personal opportunity. I recommend Attracting Capital from Angels, How Their Money and Their Experience Can Help You Build a Successful Company (John Wiley & Sons; $34.95). This book will help you identify legitimate financiers and how to sell them on your business plan. Mail your small business questions to Savvy Solutions, BLACK ENTERPRISE 130 Fifth Ave., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011 or send an e-mail to hughesa@blackententerprise.com. |
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