Access to capital has long been a necessary ingredient to launching entrepreneurial endeavors. In this section you will find stories, best practices, and connections to a variety of sources of capital.
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Mohanjit Jolly, Managing Director of Garage Technology Ventures, moderates a discussion between five VCs and Angel investors. The panel addresses key issues related to the funding process, including valuation, business plans, funder presentations, and strategies for accessing VCs.
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The legal documents included in a Private Placement Memorandum give potential investors necessary information about your company, the terms of the securities being offered and the risks of buying and holding them. Here's how to put it together.
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Angel investors provide nearly $25 billion to more than 10,000 entrepreneurial firms each year. Increasingly, angels are banding together to combine resources, know-how, and prospecting efforts to identify solid investment opportunities. With the average group investing $400,000, this funding strategy can be a good alternative when personal assets have been tapped.
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Issuing new equity shares of company stock has a direct impact on existing shareholders. Performing an equity dilution analysis can improve both financial decision-making and recruitment of new talent into the ranks of top management. A description process (including specific mathematical examples) are provided here.
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Highlights the OPIC Investment Funds Program, and the benefits the OPIC-sponsored funds are having on developing economies by fostering the development of capital, while also bringing to the countries in which they invest modern business practices, improved corporate governance, and best practices for the environment and worker rights.
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Highlights the OPIC Investment Funds Program, and the benefits the OPIC-sponsored funds are having on developing economies by fostering the development of capital, while also bringing to the countries in which they invest modern business practices, improved corporate governance, and best practices for the environment and worker rights.
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When pitching a potential investor, it is important to understand not only what they want to hear, but more importantly what they don't. Avoid these typical mistakes that many entrepreneurs make when seeking funding from angels and venture capitalists.
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Valuation negotiations between entrepreneurs and investors are often contentious. Such valuations rarely stray from the $1 million to $3 million range for seed/startup companies that angels expect to grow to $50 million to $100 million over five to eight years. Angels are most concerned about the management team's ability to rapidly grow the company and about helping the entrepreneur achieve these growth objectives.
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When a company needs to raise capital, it can issue stocks, warrants or options, bonds, notes or debentures. Know the functions and advantages of each before you choose.
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Entrepreneurs looking for seed capital should consider Toronto TSX Venture Exchange's Capital Pool Company (CPC) program, which allows companies to go public by merging with a CPC.