What if Angels and VCs Are Not for You?
by Marshall Brain
What if you have read this book and you have decided that angels and venture capitalists are not for you. What are some other options for raising money?
The most obvious place to get money is with a bank loan. The classic way to do this is to get a second mortgage on your house or a home equity credit line, but any form of collateral may be possible. There are parts of a business operation that may be collateralizable and therefore acceptable to some banks. For example, if your business needs to build a building, you may be able to get a loan to fund it.
Sometimes it is possible to get a grant instead of investment. An example here in North Carolina is NCIdea.org. Look in your local area for similar programs.
Kickstarter is the best known of the crowdfunding web sites. You propose a business idea and, if people like the idea, they will contribute money to help you get the business started. IndieGoGo is a similar site. You can learn about other crowdfunding sites and the phenomenon in general here.
This article offers several other ideas.
Keep in mind the key advantage of VC funding: if it is smart money, a VC can accelerate your company significantly. No bank loan can do that.
Raising Money Table Contents
- Chapter 1 – Introduction
- Chapter 2 – Understanding the types of investors
- Chapter 3 – The importance of your management team
- Chapter 4 – Step 1: Find a point of entry
- Chapter 5 – Step 2: Apply
- Chapter 6 – Step 3: Presenting
- Chapter 7 – Step 4: Due Diligence
- Chapter 8 – Step 5: Term Sheets and Closing
- Chapter 9 – Quick Recap of the Steps
- How to Make a Million Dollars
- How to turn your ideas into successful products