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28 Ways to Finance Your VentureFormal Venture Capital Is Not The Only Way To Finance Your Project!What alternative methods can you use to get your project off the ground? How to do you go about it? These are not government sources or other hard to qualify for programs. We have used many for our clients over the years. All will work in certain circumstances, and some may work for you. We recently funded a project for $1.3 million using a combination of nine little known techniques. Alternative Financing Techniques
Two Specific ExamplesBuild-Out Allowances from Landlords:Banks will often allow you to count build-out allowances as capital (unless it has to be repaid) in your source and use of funds statement. While the money comes in and goes out, it does increase the overall cash flow and size of your deal. We recently counted $350,000 of a $1.5 million deal against equity, when obtaining a $350,000 loan for a client. The other $800,000 came from the founders and investors. By counting the build-out allowance as equity, the debt-to-equity ratios were much more solid. Vertical Integration:Often, capital can be raised from outside companies that have a vested interest in developing either distribution channels, or assuring themselves of adequate product flow from cash-starved companies. Two examples:
Detailed Information Available:We have also arranged investments from architects, accountants, lawyers and other suppliers for our client companies. All you have to do is present a way for those Angel Investors to be more profitable in their own companies through the proposed investment. You can order the in-depth report that explains more than 28 Business Financing Strategies. The methods we mention are used by experts and based on the direct experience of our principals and their clients. As an added benefit, you will receive information on how to obtain financial ratios, performance statistics, and other key ratios used by investors and banks when making funding decisions. |
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"When we received first round funding ($5 million) the VC firm asked us to show them how our financial models were created. They wanted to use OUR TEMPLATE (which we developed from the 7 Venture Capital Reports) to help them evaluate alternative scenarios for their portfolio companies!" Michael .Lay, CFO, e-Commerce Internet Company | |
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