Successful Business Plans
Lesson 8: Funding Your Plan
Locating Private Resources
The world of private investors, including friends, relatives, coworkers, wealthy acquaintances (angels) and individual investors is a likely place to raise capital for your business. Choosing the private path leads to questions of how to find and inform a sufficient pool of potential investors about your need for private funding. Then, in exchange for the investor's money, what mechanism should be used to issue to them the documentation or securities that represent some equity or debt interest in your business? The key is knowing what aspects of deals are critical to your business and having multiple options available as you search for and enter into your funding negotiations. Examples are:
- Investments from friends and family
- Angels
- Previous or present employer
- Individual partners
- Corporate partners
- Strategic alliances
- Private foundations
- Private placements
- Limited partnerships
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