For Startups: How to raise money from friends, angels, and venture capital firms

I thought this video had great tips about raising money for small businesses.

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Jay Jay Ghatt is also editor at Techyaya.com, founder of the JayJayGhatt.com and JayJayGhatt.com where she teaches online creators how to navigate digital entrepreneurship and offers Do-It-For-You Blogging Service. She manages her lifestyle sites BellyitchBlog, Jenebaspeaks and JJBraids.com and is the founder of BlackWomenTech.com 200 Black Women in Tech On Twitter. Her biz podcast 10 Minute Podcast is available on iTunes and Player.fm. Follow her on Twitter at @Jenebaspeaks. Buy her templates over at her legal and business templates on Etsy shop!

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2 thoughts on “For Startups: How to raise money from friends, angels, and venture capital firms

  1. Generally speaking, raising money from friends and relatives is a straightforward proposition: you offer them equity (their returns come from future profits in the biz), debt (they collect installment payments), or both. Angels operate similarly to friends, only they’re likely to require the entrepreneur demonstrate some level of self-capitalization.

    Both traditional debt financing — whether a bank loan (SBA-backed or otherwise) or ‘hard money’ — and venture capital require varying levels of self-capitalization, if not proof of operating revenue. The challenge for many aspiring entrepreneurs then is how to raise that seed capital beyond bootstrapping. Some very sound alternative financing techniques include factoring, receivables financing, advance sales, and subscriptions.

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