Funding

February 1st, 2007

Bank loans

Term loans

Not for speculative finance, can finance something specific (equipment, improvements…)

Lines of credit

Often based on your accounts receivable and or inventory.

This is used for short term cash needs

Equity Financing

Bridge loans

Debt that turns into equity when more funding is achieved.

Angel Groups

A group of people with money to spend looking for investment opportunities. May except bridge loan or preferred stock. Around 50 thousand plus investment. May last for a year or two.

Alliance of Angels

Keiretsu Forum

Puget Sound venture Club

Seraph Capital

Zino Society

Seed Funding Firms

You have about three months to build your product and you get enough money to live on, it gets you started. Probably around 6k investment

Often take common stock equity in the company.

Venture Capital Funding

Determine the terms. Take preferred stock, may elect their own management team. 3 -7 years of investment, usually several million

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