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Please match the source of the funding to the best example or description. - Personal savings - Angel Investor - Friends, family, and other fools
Please match the source of the funding to the best example or description.
Personal savings
Angel Investor
Friends, family, and "other fools"
Crowdfunding
Bootstrapping
Venture Capitalists
SBIR, STTR SBA
Bank loans
A
A difficult group to manage. If they do not invest and you are successful, they will be angry. If they do invest and you fail, they will be angry.
B
More experienced, older, and wealthier entrepreneurs may make early stage investments.
C
ILinc used this. Computer and IT ventures often sell "vaporware" or other products for later delivery. The sales fund the venture.
D
Groups of investors raise pools of funds to make investments and take an equity position in the new venture. They assume that many will fail, but that a few will be big winners.
E
Max your credit card, take a mortgage, and use you own bank account.
F
Instead of equity, they take debt which has to be paid off before the equity investors can take any money out of the venture. Often the entrepreneurs take on large personal risk to provide a guarantee.
G
Kickstarter, Indiegogo, and others
H
Governments will often provide funding for new ventures to encourage economic development.
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