There is a severe lack of available capital in the aftermath of one of
the most extreme recessions/depressions this world has experienced since “The Great Depression” which began in 1929 and lasted until the late 1930s or early 1940s. Nonetheless, entrepreneurs should continue to exercise caution when seeking financing to establish, maintain or grow their companies.
Who you select to fund/finance your business can make a difference.
▪ Are they any of the following?
1. Angel Investor 2. Private Equity 3. Hedge Fund 4. Venture Capital 5. Commercial Bank 6. Investment Bank 7. Small Business Administration (SBA) STIR/SBIR public/private funding venture? 8. "Small Business Investment Company" (SBIC)?
There are a few critical questions that should be addressed before
selecting a Financial Institution or a particular Funding Strategy:
Question(s):
▪ What is their target market: startup, expansion or existing (mature)
businesses? ▪ Industry: What is their industry focus? ▪ Do they offer conventional equity in exchange for investment or royalty based financing? ▪ Do they offer: Acquisition, Refinance, Business Capital, Re- organization? ▪ Does their portfolio include capital structuring, public/private financing and/or international placements? ▪ What is their involvement level? ▪ Do they require management and/or board placement? ▪ Do they offer Joint Venture funding? ▪ If yes, what percentage and/or how much? ▪ Do they require cash collateral? ▪ f Yes, who is the responsible party?
▪ If Yes, what is the timeline? ▪ If No, what is their funding cycle (Seed, 1st, 2nd, 3rd, 4th Round & Exit)? ▪ What is their exit strategy? ▪ Do they have any referenceable opportunities (clients/partners) to share?
Recommendation(s):
If you choose to work with any of the aforementioned sources, make
sure to check all available references.
For opportunities with the Small Business Administration, visit:
(http://www.sba.gov/services/index.html).
When seeking more traditional forms of funding, visit the institution’s
web site and research the organization’s performance through various sources, including; stock reports, customer surveys and online blogs.
For others seeking angel, venture capital, mezzanine or IPO
financing, check out The National Venture Capital Association’s web site (http://www.nvca.org) before committing your ideas, business and livelihood to a Vulture Capital Fund.
With the right partnership, anything is possible!
-- Preston G.M. Williams III M.Sc. • CPA • CIS Senior Partner & CIO GBC® Global Services Information Technology Solutions Internet: http://www.gbc-inc.net Twitter: PrestonW
![Warrants[1]](https://imgv2-2-f.scribdassets.com/img/document/40247535/149x198/2e1ae681f9/1422535487?v=1)
![language of the-stock market-powerpoint presentation 1122g1[1]](https://imgv2-1-f.scribdassets.com/img/document/1040841/149x198/8e80f21d03/1586024389?v=1)
