How to understand the opportunities and tradeoffs associated with different sources of financing

Equity Financing: With equity financing, you retain full control over your business but you sacrifice a portion of your ownership and control to the investors.

Debt Financing: With debt financing, you don’t have to give up any ownership stake in your business, but you will be responsible for repaying the debt, including interest payments.

Crowdfunding: With crowdfunding, you can tap into the power of the crowd and raise capital from a large number of investors, typically individuals, with smaller investments. However, you will need to offer incentives, such as equity or rewards, to attract investors.

Business Grants: With business grants, you can receive funding from the government or other organizations without having to give up equity or pay back the money. However, these grants are typically limited and highly competitive.

Small Business Loans: With small business loans, you can borrow money from the government or other organizations with favorable terms, including low interest rates and flexible repayment plans.

However, you will need to have a strong credit score and a solid business plan to qualify for a loan.

Angel Investors: With angel investors, you can raise large amounts of capital from private individuals.

Thank you for reading. Create summary videos with Kimavi.