Raising capital Flashcards
Types Of Capital
- Financial Capital
- Human Capital
- Intellectual Capital
- Physical Capital
- Real estate
- Securities
5 Common Sources Of
Equity Capital
- Bootstrapping
- Friends and family
- Crowdfunding
- Angel investor
- Venture capital
Sources Of Dept Capital
- Commercial banks
- Government loans
- Short-term loans
- Intermediate and Long-
term loans
Other Methods Of Financing
- Factoring account
receivable - Leasing
- Merchant cash advance
- Peer-to-peer lending
- Credit cards
2 types of Financing
Equity financing
Debt financing
A type of financing where investors provide capital
in exchange for ownership shares or an active
role in the company.
Equity Financing
A form of financing where a company receives a
loan and promises to repay the debt over a
predetermined period.
Debt Financing
The initial stage of a company’s development,
often characterized by high risk and uncertainty.
Startup Phase
A financial metric used to assess a company’s
ability to generate profit relative to its revenue,
assets, equity, or other financial metrics.
Profitability Metric
The stage in a company’s life cycle where it has
established significant market presence and
seeks additional funding to expand further.
Growth Phase
A formal statement often used in the process of
raising capital, detailing a business’s goals,
strategies, and financial forecasts.
Business Plan
An individual who provides small to substantial
amounts of capital to startups, often in exchange
for convertible debt or ownership equity
Angel Investor
A high-risk form of capital typically used in the
later stages of a company’s growth, combining
elements of debt and equity financing.
Mezzanine Capital
The process of raising small amounts of money
from a large number of people, typically via the
Internet.
Crowdfunding
A form of financing in which a company uses its
own earnings to fund its operations and growth,
without external assistance.
Bootstrapping
