Funding decisions are not just based on getting the numbers right. A lot more goes into deciding whether your project can be funded and by how much. This is a startups’ guide to loan as well as equity funding
Whether you are a fresh startup or a multi-million dollar conglomerate, you always need outside funding. You need funding for starting up, for new projects and business lines, for building your brands and for working capital amongst other things.
| The ratings |
| We rate each item for high or low importance to the banker or the investor. High means a score of three or more on a scale of five, low obviously means two or less. Investors here include seed investors, angel investors, venture funds and private equity funds. |
Depending on the risks involved and the timeline for repayment, you might approach a bank, a peer organization (for short-term inter-corporate loans) or an investor like a private equity fund, a VC or an angel investor. Each of them will follow their own process to determine whether to fund your request and how much to fund.
While there is a lot of number work that goes into this decision, there are a number of other factors that play a significant and often more important role in deciding both, whether you are funded and how much you are funded by.
In this piece, we will take you through 20 such elements that could be the make-or-break factor in your being funded
1. The business plan
The business plan is the basis on which funding is done, whether it is a loan or a venture investment. The business plan is where your funding pitch starts. Enough and more has been written about how to create the best business plan. Fact is no two organizations look for the same things in a business plan. Some banks, for example, have standard formats. Further fact is that a business plan is just not enough. Read on to find out what else can swing the deal for you.
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2. Your existing brands
Well-established and easily recognized brands are a big plus in pushing your case for funds. In case of loans, you can actually get your brands valued and can provide them as collateral. Otherwise, your brands per se are not that important in the case of loans. In the case of investments, particularly late stage funding like private equity, the value of the brands go a long way in enhancing the valuation of the business.
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3. Infrastructure (land and buildings the company owns)
Bankers place a very high premium on owned infrastructure when deciding the extent to which to fund you. Investors on the other hand do not place too high a value on this, unless you are in the business of infrastructure or real estate (in which case your land bank is your asset), in which case, you need to approach only those who specialize in funding such businesses.
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written by R.GOWRI, February 12, 2011
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written by Pet insurance Australia, September 26, 2009
written by Anil, September 22, 2009
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written by Santosh, April 11, 2009
Growth Business Development Praposal
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written by income protection, March 10, 2009
written by kartikeya, February 24, 2009
For "DARE & me" it's just a begining..
it would be better for starters if you can provide a in-depth information & some real examples.
if you ask me my feelings after reading this article...
"instead of getting nothing its better to get something " for me..
Looking for more valuables from your side.
Regds,
kartikeya
Airlinejobz
written by Gopal Shivapuja, November 10, 2008
Though quite informative on the macro perspective a little more in depth description would have been good. A few examples or case studies would have been highly appreciated.
Regards,
Gopal Shivapuja
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