{"id":530,"date":"2015-01-05T04:22:12","date_gmt":"2015-01-05T04:22:12","guid":{"rendered":"http:\/\/www.mba-mondays-illustrated.com\/?p=530"},"modified":"2024-02-21T21:14:56","modified_gmt":"2024-02-21T21:14:56","slug":"financing-options-for-startups","status":"publish","type":"post","link":"https:\/\/mba-mondays-illustrated.com\/2015\/01\/financing-options-for-startups\/","title":{"rendered":"Financing Options For Startups"},"content":{"rendered":"

\"063-financingoptions2\"<\/p>\n

I got a bunch of great suggestions in my kickoff post on this topic last week<\/a>. Based on that feedback, the series is going to look like this:<\/p>\n

    \n
  1. Friends and Family<\/li>\n
  2. Contests\/Prizes\/Accelerator Programs<\/li>\n
  3. Government Grants<\/li>\n
  4. Customer Financing<\/li>\n
  5. Vendor Financing<\/li>\n
  6. Convertible Debt<\/li>\n
  7. Preferred Stock<\/li>\n
  8. Venture Debt<\/li>\n
  9. Capital Equipment Loans & Leases<\/li>\n
  10. Bridge Loans<\/li>\n
  11. Working Capital Financing<\/li>\n<\/ol>\n

    This list is roughly in chronological order of how a small company might avail itself of the various financing options, but there are always exceptions. Starting a company is more art than science.<\/p>\n

    I want to do each financing option as its own dedicated post so I’m not going to start today. I will start next week with friends and family.<\/p>\n

    If you are looking for some meaty MBA Monday reading this week, I point you to Brad Feld and Jason Mendelson’s awesome venture capital term sheet series<\/a>, which is required reading for anyone seeking to raise venture capital.<\/p>\n

     <\/p>\n

    From the comments<\/h3>\n

    Wil Schroter<\/a> added:<\/p>\n

    Fred, with so much emphasis on angel and venture funding, I think most people forget that 99% of companies will receive neither and seem to get by just fine.\u00a0 This may be captured within a different category, but traditional bank financing, SBA Loans, Microloans, etc. are also part of the picture.<\/p>\n

    Also, I’m glad you added customer financing since I’d argue it’s the most valuable.<\/p><\/blockquote>\n

     <\/p>\n

    This article was originally written on May 23, 2011 by Fred Wilson here<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

    \"063-financingoptions2\"<\/p>\n

    I got a bunch of great suggestions in my kickoff post on this topic last week<\/a>. Based on that feedback, the series is going to look like this:<\/p>\n

      \n
    1. Friends and Family<\/li>\n
    2. Contests\/Prizes\/Accelerator Programs<\/li>\n
    3. Government Grants<\/li>\n
    4. Customer Financing<\/li>\n
    5. Vendor Financing<\/li>\n
    6. Convertible Debt<\/li>\n
    7. Preferred Stock<\/li>\n

      …<\/ol>\n

      Continue readingFinancing Options For Startups<\/span><\/a><\/p>\n

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