Tag: angel investors

Finding enough cash to get your small new business started or keep it running can be one of the biggest challenges you face as an entrepreneur. Here is a list of 8 different sources of business funding that can save your company’s future: 1. Friends and Family Before you groan at the idea of hitting up your loved ones for cash, you should know that friends and relatives are one of the most common sources for startups. No one knows you or believes in you more than this crowd. And they may be […]

When your business is ready for that next round of funding, you might start looking for angel investors or venture capitalists to help finance your growth. However, the terms are not synonymous – even though they both contribute to your business funding, their motivations and roles are often very different. Here are a few of the main differences: Pay Schedule Venture capitalists (VCs) work for a group of professional investors who all contribute a portion of money to fund many projects. VCs […]

Fledgling startup companies are often in search of a cash infusion via angel investor or venture capital. The problem is these types of funding are hard to come by for small businesses without much history. Many startups will try to follow conventional business wisdom to grow until they can attract and angel or VC. However, there times when sticking to traditional paths may not be the best way to obtain the desired financing. Sometimes as a business is getting off the ground, there may be significant […]

Angel investors and venture capitalists get a lot of attention when it comes to small business financing, but in reality startups get much more business funding from family and friends. A report from Fundable.com found that 2013, friend and family members poured $60 billion into small businesses while venture capitalists invested just $22 million and angel investors contributed only $20 billion. In fact 38% of all startup entrepreneurs in 2013 raised money from their loved ones, with the average […]

Raising money for small business start-ups is typically one of the most important but also one of the most daunting tasks for entrepreneurs. Bank loans and angel investors are often sought-after forms of business funding, but the rates of rejection can be really high. For example, in November 2014, Biz2Credit reported that big banks only approved 20.8 percent of all the small business applications it received. That means almost 80 percent were turned down! If you have been among that 80 percent […]

Banks and lenders look for a specific mix of factors when considering small business loan applicants. One of the most important aspects of an entrepreneur’s loan request is how much capital he or she has to contribute to the business. It is called putting ‘skin in the game.’ Lenders want to see that the owner is so passionate about the new company that he or she is willing to put personal funds to ensure its success. This idea of supplying part of the funds from one’s own pockets is also […]

Creating a start-up means putting it all together on paper successfully first. This phase definitely requires lots of patience to be thorough rather than rushing into an exciting idea.

Among the number of growing alternative sources of funding, business owners can now consider revenue-based financing