Funding Comparison.
Need help with my Business question – I’m studying for my class.
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Below is a chart comparing funding methods used by small business.
The chart compares and contrasts requirements and agreements necessary to obtain the funding. They appear in the chart in the order below
Funding option #1 is Bootstrapping
Funding option #2 is Banks/financial institutions
Funding option #3 is Factoring (Accounts Receivable financing)
Funding option #4 is Angel investor
Funding option #5 is Incubator firm
Funding option #6 is Venture capitalist
Funding option #7 is Small business association
Funding option #8 is Web-based Crowdfunding site
Do complete the necessary details within the chart below.
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Option 1 |
Option 2 |
Option 3 |
Option 4 |
Option 5 |
Option 6 |
Option 7 |
Option 8 |
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Type of Financing |
Bootstrapping |
Debt Instrument: Bank Loan |
Debt: Factoring A/R Financing |
Equity Instrument: Angel Investor |
Equity: Business Incubator |
Equity Instrument: Venture Capitalist |
SBA or State Grants or Loans |
Kickstarter: Web-based Crowdfunding site |
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Defined |
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Requirements
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Advantages
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Disadvantages
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Sources
Anonymous (2013) Accounts Receivable Financing. Investopedia. Retrieved March 24, 2013 from http://www.investopedia.com/terms/a/accountsreceiv…
Anonymous (2013) Angel Investors. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/a/angelinvestor….
Anonymous (2013) Bootstrap. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/b/bootstrap.asp#…
Anonymous (2013) Equity Financing. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/e/equityfinancin…
Anonymous (2013) Facts about Government Grants. SBA. Retrieved March 24, 2013 from http://www.sba.gov/category/navigation-structure/l…
Anonymous (2013) Loans. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/l/loan.asp#axzz2…
Anonymous (2013) Incubator Firm. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/i/incubatorfirm….
Anonymous (2012) Types of Debt Financing for Small Business. NFIB. Retrieved March 24, 2013 from http://www.nfib.com/business-resources/business-re…
Anonymous (2013) Venture Capital. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/v/venturecapital…
Chaafkin, M. (April 2013). Kickstarter can fund your dreams. Fast Company, 174, 92.
Mariotti, S., Glackin, C. (2013) Entrepreneurship: Starting and operating a small business. 3rd ed. Upper Saddle River, NJ: Pearson
– Effectual Entrepreneurship (2nd ed., 2017) by Read, Sarasvathy, Dew, & Wiltbank. Publisher: Routledge (Paperback ISBN: 9781138923782; E-book ISBN: 9781315684826)
