Sources of Start-Up Capital


wealthymatters.com

 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

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