Sources of Start-Up Capital

 As Adrian from 7million7years puts it:

Start-Up capital almost always comes from the Four F’s:

– Founders – What does your personal ‘balance sheet’ look like? Do you own a house, car, etc. Many a business has been started by refinancing existing assets, borrowing money on credit-cards, and so on. Desperate times call for desperate measures.

– Friends/Family – These two groups will invest small amounts – from $100 to $10,000 each. Pull a few together and you may get enough. Usually, they are investing in YOU, so financial results are less important to them. But, if you have a business plan that reads well, and you have a wide circle, you’re ready to start asking!

– Fools – These are seed-stage investors who MAY invest in an idea, but they are VERY hard to come by. You probably need more than one co-founder (one-man businesses are usually seen as too one-sided), and you will need to demonstrate a business with good upside

About Keerthika Singaravel

8 Responses to Sources of Start-Up Capital

  1. crs25funding says:

    This might not be the ideal place to request this, but I’m trying to find a startup capital online and have no method to find out who can help me. I uncovered this website which is I find reliable and wanted to see if any person has any reviews on them.
    Please help me with this as my wife and I have been struggling to find a good/reliable site to obtain affordable and even start up capital.

    • Just how much do you need and what is your start-up about? As best as I can see,this site seems to be that of a loan broker.As I have never had a call to use them and am unfamiliar with the American corporate credit system,I can’t comment.However should you explain your needs, I will try to suggest lines of credit I am familiar with.

  2. Funding says:

    Great tips. I agree with friends and family as well. Investors invest in people, not businesses, which is why it is so important to focus on themselves, their experience, and their background while pitching to an investor. Do not appear to be unsure of yourself, but do not appear to be cocky, no investor wants to invest with a cocky person who feels as if they are doing the investor a FAVOR.

    As far as dumb people i slightly disagree. If you “trick” an investor, in the long run you are only tricking yourself. An investor should know what he is getting into, many times they should act as am adviser and be bringing experience, contacts, strategic partnerships, media contacts etc to the table. It is very rare that someone is going to take money from an investor, they barely speak and then the entrepreneur comes back and says… oh hey “were successful”. Business is hard, adding money to the problem does not fix it, it helps but by no means does it build a successful business for you.

  3. Shante Dopler says:

    I wanted to thank you for this great read!! I certainly enjoying every bit of it. I have you bookmarked to check out new stuff you post.

  4. Nestor says:

    I unquestionably enjoyed the post. It proved to be pretty beneficial to me.

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