Financing your business
  Sources of finance for
        startups
Types of financing
Equity
Loan
Other sources
Equity Capital
Ownership
Willingness to take risk
No interest and repayment
Profit at exit – maybe…
Sources of Equity Capital
FFF
Seed Funds
Business Angels
– Individuals
– Networks

Venture Funds
Corporate Venture
Stock M...
Loan Capital
Low willingness to take risk
Interest and repayment starts
immediately
No ownership
Sources of Loan Capitals
Banks
Real Estate Funding
Guarantee Schemes (through banks)
FFF
Other types
Grants and Awards
Funds
Leasing
Factoring
Negotiate payment terms
Financing & Life Cycle
R&D
Start up
Exploitation & Growth
Expand product
                                          to national
                                          markets    ...
R & D Financing
Seed Capital
– Often connected to universities

Public Sector
– If R&D is in the interest of society

Vent...
Start Up Financing
Business Angels
– Growth potential necessary

Venture Capital + Corporate
– High growth potential neces...
Exploitation & Growth
                     Financing
Banks
Business Angels
Venture Capital
Sources of finance
                                                  Equity Funds

                                Venture...
R&D/Idea       Startup     Early growth   Marketing     Growth          Maturity



                                      ...
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Financing your business

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Financing your business

  1. 1. Financing your business Sources of finance for startups
  2. 2. Types of financing Equity Loan Other sources
  3. 3. Equity Capital Ownership Willingness to take risk No interest and repayment Profit at exit – maybe…
  4. 4. Sources of Equity Capital FFF Seed Funds Business Angels – Individuals – Networks Venture Funds Corporate Venture Stock Markets
  5. 5. Loan Capital Low willingness to take risk Interest and repayment starts immediately No ownership
  6. 6. Sources of Loan Capitals Banks Real Estate Funding Guarantee Schemes (through banks) FFF
  7. 7. Other types Grants and Awards Funds Leasing Factoring Negotiate payment terms
  8. 8. Financing & Life Cycle R&D Start up Exploitation & Growth
  9. 9. Expand product to national markets BRIDGE IPO or sale Completing product STAGE 1 development & Preparing startup STAGE 2 Capital to maintain Full scale until pending manufacturing & sales liquidity event or initial expansion SEED STARTUP Product development, market research & Concept building management infrastructure
  10. 10. R & D Financing Seed Capital – Often connected to universities Public Sector – If R&D is in the interest of society Venture Capital – If the potential is really promising Corporate – If it is of strategic interest
  11. 11. Start Up Financing Business Angels – Growth potential necessary Venture Capital + Corporate – High growth potential necessary Public Sector – Grants Bank loans – Typically small – Through Guarantee Schemes
  12. 12. Exploitation & Growth Financing Banks Business Angels Venture Capital
  13. 13. Sources of finance Equity Funds Venture Funds Vækstfonden – Guarantee Schemes and more Business Angels Seed Fund Own money Idea/Pre-seed Seed Startup Initial growth Expansion Re-structuring
  14. 14. R&D/Idea Startup Early growth Marketing Growth Maturity Private Equity 6 IPO Late-stage VC’s Revenue Non-Bank lending Factoring Early-stage VCs PROFITS Corp. Investors 4 INVESTMENT SIZE Seed Capital Founder Founders Grants Business Angels FFF TIME - 2-

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