Seed funding helps companies with a new product launch.
Seed funding is most often confused with startup capital, but they are two different things. It is provided to help a business develop an idea, create the first product, and market the product for the first time. Companies that typically qualify for seed funding are around a year old, and they have never created a product or service for commercial sale. The company is generally so young that the key management team has not yet been assembled, or if it is in tact it was recently formed.
Seed funding is most commonly provided by angel or other private investors. If your business uses an investor to gain capital there are some things to keep in mind. As the owner you will have to share your control of the business with the investors and you will also be required to share confidential business information with potential investors. Investors are also seeking to earn at least 30% on their money, so make sure your business can provide at least that much of a return before going after investors heavily.
Make sure that you also have a clear exit plan for the investment in place after a few years. In order to qualify for this sort of financing through an investor it is important that the market for your product be at least $1 billion total. These are just a few things to keep in mind when looking for an investor for your business.
Startup Funding & Business Plans Consulting Services For Startup Company! Venture Capital!
Showing posts with label RegD. Show all posts
Showing posts with label RegD. Show all posts
Tuesday, October 1, 2019
Tuesday, July 2, 2019
Equity Loan
Equity loan
Is typically an "investment" in a company that is secured by a certain amount of that company’s shares and structured, in part or whole, as a loan. Investment banks will provide funds secured by the "equity" or ownership shares of your company.
Companies that receive funding are those in large rapidly growing markets, or in niche markets which are not targeted by major players.
Investment Stage
Early and later stage companies with a founder and partial management team with revenue or profits and the need for expansion capital.
Size of the Investment
Typically $1-2 million initially with up to $5-10 million over the life of the investment.
Duration
Investments typically are for 3-5 years, but sometimes may last longer.
Is typically an "investment" in a company that is secured by a certain amount of that company’s shares and structured, in part or whole, as a loan. Investment banks will provide funds secured by the "equity" or ownership shares of your company.
Companies that receive funding are those in large rapidly growing markets, or in niche markets which are not targeted by major players.
Investment Stage
Early and later stage companies with a founder and partial management team with revenue or profits and the need for expansion capital.
Size of the Investment
Typically $1-2 million initially with up to $5-10 million over the life of the investment.
Duration
Investments typically are for 3-5 years, but sometimes may last longer.
Tuesday, May 7, 2019
5 Things Investors Want to Hear From You!
Pitching your company to angel investors or venture capitalists can be intimidating, especially when the fate of your start-up small business rests in their hands. In preparing your presentation, keep in mind that angels and VCs are essentially looking for five key ingredients in your business plan.
Market Size
Investors will want to know how large the market is for your particular product or service. You could have the best idea in the world, but if there is a very limited number of people who could possibly patronize your business then your product or service will never have the potential to make a lot of money. And the potential for great profits is the bottom line investors are watching.
Market Need
Once you have shown the angel investors or venture capitalists that there is a large enough market for your business, you need to prove that there is a real need for your service. Does your product or service truly offer something that the market needs, something that could significantly improve on or add to existing options?
Competition
Investors will want to know who your direct competitors will be and how many there are. Are there already companies that dominate the market in your specialty? If so, you need to show how you can outdo your competition to become the front runner.
Profitable Business Strategy
Your business needs to have all the right parts and pieces in place to make money. Investors want to hear about how you are going to keep your overhead costs down, how you already have the perfect manufacturer for your product, how you plan to offer faster servicer than what is available. They want to know how many employees you have or need to be efficient and quickly your business can start turning a real profit. How are you going to run your business so that it can become a smashing success?
The Right Person
Finally, investors are looking for the right person for the job. They want to see that you have the drive and passion to put your ideas into action. They want to know that you are driven and will work tirelessly to put their money to good use. You have to sell yourself as part of the investment.
If you can distill your business pitch into these five basic elements, you should be able to secure the funding you need to thrive.
Market Size
Investors will want to know how large the market is for your particular product or service. You could have the best idea in the world, but if there is a very limited number of people who could possibly patronize your business then your product or service will never have the potential to make a lot of money. And the potential for great profits is the bottom line investors are watching.
Market Need
Once you have shown the angel investors or venture capitalists that there is a large enough market for your business, you need to prove that there is a real need for your service. Does your product or service truly offer something that the market needs, something that could significantly improve on or add to existing options?
Competition
Investors will want to know who your direct competitors will be and how many there are. Are there already companies that dominate the market in your specialty? If so, you need to show how you can outdo your competition to become the front runner.
Profitable Business Strategy
Your business needs to have all the right parts and pieces in place to make money. Investors want to hear about how you are going to keep your overhead costs down, how you already have the perfect manufacturer for your product, how you plan to offer faster servicer than what is available. They want to know how many employees you have or need to be efficient and quickly your business can start turning a real profit. How are you going to run your business so that it can become a smashing success?
The Right Person
Finally, investors are looking for the right person for the job. They want to see that you have the drive and passion to put your ideas into action. They want to know that you are driven and will work tirelessly to put their money to good use. You have to sell yourself as part of the investment.
If you can distill your business pitch into these five basic elements, you should be able to secure the funding you need to thrive.
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