Tag: venture capital

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 […]

If you are prepared to give that information, you can kick your stress level down a notch and get to work at finding the right VC or angel investor

In the course of trying to raise money for your business needs, you have the choice of seeking dilutive or non-dilutive financing. Each has a role to play, but it is important to time them right to make the most of your ownership. Dilutive financing is any type of capital received by your company that diminishes your ownership. This includes deals with angel investors and venture capitalists when you give up a portion of your equity to gain their cash. It also includes any public or private rounds […]

Writing up an effective business plan to attract investors or lenders includes at least three essential items. Part I described the ins and outs of an income statement. This article defines the necessary elements of the balance sheet and Part III outlines the importance of the Cash Flow statement. Putting together a well-polished set of financial statements may be the key to securing the business financing you need. A balance sheet is a measure of how much your business is worth. It can be created […]

When you’re ready to enlist the help of venture capital, angel investors or even your local banker to secure funding for your company, preparing a solid and effective business plan is essential. While the business concept and information on key leadership is certainly important, investors and lenders are always going to want to get down to the nitty-gritty financial details of your firm. They want to know how your business shakes out by the numbers – how much your company is worth and what is […]

Start-up companies have traditionally been out of luck when it comes to scoring venture capital funding, but the VC landscape has seen some definite shifts in the past few years. Now entrepreneurs just starting out may have more financing options than ever before. The progression of technology is helping to make venture capital investment groups more attractive and easier to form. Investors can come together from different parts of the country or even the globe and meet together as often as possible […]

Once your business has gotten through its seed funding round and the gears of success are start to turn, your next step is likely to get another infusion of capital through investment. This is the arena of venture capitalists. They look for thriving small companies that can bring them large returns on their investment. If you have made it to the stage where you can attract the attention of VCs, your business is in a good spot. Once you are ready to take on some of those investors, the key is to create […]

Whether your business is just starting up or gearing up for a round of venture capital, your ‘burn rate’ is an important number to understand and manage. It can help you determine if you are keeping enough working capital on hand and help you make a plan to compensate for any losses in profit. Burn Rate Defined A burn rate is the rate at which you spend your financial reserves. There are two types of burn rates to pay attention: gross and net. The gross burn rate is the total amount of capital […]

Getting past the start-up phase in any small business is a major accomplishment. But it is no time for resting on one’s laurels either. Expanding an established business means finding another round of funding. Where is the best place to find expansion financing? It may surprise you to know that the majority of small businesses use their personal assets or obtain extra funding from family members. According to the 2007 Survey of Business Owners (SBO), 51.2 percent of small employers kept financing […]