MODULE 4 PART 2: The Financial Aspect (Capital Funding Strategies) Flashcards
(8) Capital Funding Strategies:
- Personal Investment
- Love Money
- Venture Capital
- Loans
- Angels
- Business Incubators
- Crowdfunding
- Grants and Subsidies
Person invests and manages financial instruments, such as stocks, bonds, real estate, and others, as a personal investment.
- Personal Investment
Money given to a spouse, parents, friends, or other loved ones.
- Love Money
Investors invest this to small and start-up businesses that they believe have long-term growth potential.
- Venture Capital
Most common form of funding for small and medium-sized business.
- Loans
Typically wealthy individuals or retired executives who make direct investments in privately held small businesses.
- Angels
Future businesses and start-ups frequently invited to share incubator spaces with other established business.
- Business Incubators
Type of fundraising where it involves a business asking the general public for money.
- Crowdfunding
Can be used for specific things and can be paid without repaying.
- Grants and Subsidies