Jonathan Sommers Venture Capital - And Other Funding Options For Your Business - PowerPoint PPT Presentation

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Jonathan Sommers Venture Capital - And Other Funding Options For Your Business

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Jonathan Sommers Certified tips provider. In this article I would like to run through some of the top private equity training programs available today. It can be difficult to understand the benefits and disadvantages of each program so I hope to tease out some of these issues today. There are not a huge number of PE training programs because it is a relatively niche industry. – PowerPoint PPT presentation

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Title: Jonathan Sommers Venture Capital - And Other Funding Options For Your Business


1
Jonathan Sommers Venture Capital - And Other
Funding Options For Your Business
  • Jonathan Sommers Specialized tips provider. When
    is the right time to consider VC or Private
    Equity for your enterprise? Initially every
    entrepreneur needs to first see if they have
    exhausted all other options first. Typically, a
    company would be low on equity when considering
    private investors. There are however multiple
    sources of equity capital, including, Friends
    Family, Business Angels, VC's, Corporate/Strategic
    Investors, Private Equity companies or The
    Entrepreneur's own capital.
  •  
  • For those seeking capital of 500k look for VC.
    For smaller investments, entrepreneurs should
    seek a Business Angel or Debt Capital. An
    understanding of the different types of funding
    stages is therefore useful so see below.
  •  
  • Pre-seed funding is funding that is needed prior
    to physically construct the enterprise. Usually
    this funding goes to putting together a good
    business plan that can impress potential
    investors.
  •  
  • Jonathan Sommers Top service provider. Seed
    funding is funding that is required to start
    building the company. It is possible that some
    companies could if appropriate skip this funding
    phase, but seed capital is usually the capital
    that is required to get the basics for a
    start-up. Usually at seed stage, a company is not
    yet ready to open for business, and this funding
    is usually used to rent office space, real
    estate, equipment needed to produce the company's
    product or service
  •  
  • Seed funding is less commonly invested by VC's
    and is not necessarily a large amount of funding.
    Seed funding can range from 100k-500k. Rarely
    does it exceed 1m. Seed capital can also be
    raised from a Business Angel, Friends and Family
    or the Entrepreneur's own funds. Only 15 to 25
    of VC's invest in seed funding.
  •  

2
Early stage funding is usually where VC is
sought. A company is usually ready to trade but
requires additional capital for salaries.   Later
stage funding is also known as expansion/growth
stage funding is for companies who are doing well
and are seeking to expand. Jonathan Sommers
Expert tips provider. There are numerous ways
that entrepreneurs raise seed capital to get
started. These conventional ways include raising
debt capital from a business lender, merchant
bank or angel investor who are willing to invest
seed capital into the business. Other more
ingenious entrepreneurs raise seed capital
through raising debt capital, sweat equity and
funding from friends and family. VC is usually
raised with early stage funding, i.e. as above,
series A or series B funding. In most cases, VC's
will not invest less than 1 million in a
company.   Understand these and you will be off
to a good start and be taken seriously.  
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