Taking Funding for Your Startup Business?
As a bootstrapping entrepreneur, there will likely come a time when you either have to entertain selling your business or taking funding to continue operations. Your options for external funding include, but are not limited to, business loans, angel funding or venture capital (VC) money. Business Fund has two great articles about pitching to VCs and pitching to lenders.
While both parties have the intent of turning a profit on their investment in you, one may have the intention of taking your company to a level where they can sell it off or take it public. That’s typically what venture capitalists do. They are also often in a better position to understand your business than the average lender (from a bank or otherwise). So if they see the merit in your business, and you pitch them well, they’re more likely to invest in you than a regular lender. The flipside, of course, is what will you be giving up down the road?
