What are the methods of financing your own business I was thinking VC’s but I need details?
Posted by admin on 30 May 2009 12:33 pm. Filed under Investing.
nader r
ALSO why do VC’s provide financing at all I mean say you need money for your business and I give it and I want a 51% stake in the company as the venture capital firm but I am PAYING FOR THE WHOLE THING how does this help me?
ALSO why do VC’s provide financing at all I mean say you need money for your business and I give it and I want a 51% stake in the company as the venture capital firm but I am PAYING FOR THE WHOLE THING how does this help me?
One Comment to “What are the methods of financing your own business I was thinking VC’s but I need details?”
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On June 2nd, 2009 at 7:31 am
I’ve always financed things with the local small bank as they give the best terms. There are now some finance companies backed with wall street money but their terms will be in between bank and VC firms.
The answer to your second question is purely R.O.I. or RETURN ON INVESTMENT. If a VC firm lends $50,000 that returns $25,000 a year to them, why wouldn’t they do it? They realize there are plenty of entrepreneurs out there with great ideas and they want to piggy back on your success. These people have money, but they need your ideas, and you’ll also be doing the work. They are just lending money, and they can’t make much lending it out in the traditional fashion like banks. If you start the next Yahoo or Google they don’t care how much money you make as long as they make it right along with you.