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Here, we'll explore three practical ways to secure that crucial start-up capital. Venture capital: The big-league booster Venture capital (VC) isn't just for tech giants and Silicon Valley startups. Securing venture capital means partnering with investors who provide funding in exchange for equity, or shares, in your company.
Crowdfunding Traditionally, there were only two ways to fund a business through history. The first was called "debt financing." Under debt financing. Crowdfunding is altogether different. With crowdfunding, you neither take on a debt nor do you bring on a partner. Pretty simple. That's their repayment.
Get a partner If taking on debt does not appeal to you, another funding option is to bring on a partner with deep pockets. Decisions will be joint, your partner will have equal say, and the partner can even take on debt in the name of the partnership. Crowdfunding is newer and altogether different. No debt, no equity sharing.
Small business loans Not all debt is bad debt. Depending on the loan provider, you may be able to access funding much faster than using other methods, like grants or crowdfunding. While grants do not have to be repaid, businesses often have to apply and meet specific criteria that can vary by grant.
The post CEI Africa Joins Crowdfunding Platforms to Back MPower first appeared on Africa Capital Digest. To read this article, you must be a paid subscription member. Current members login here) [.]
I probably get around a dozen e-mails a week asking me how to get into venture capital. On top of that, anytime I talk to anyone who wants to get involved in startups but isn''t sure what they want to do, inevitably, I hear, "And then I was thinking maybe I should look into venture capital, too.". You can''t crowdfund a fund.
If you're trying to use personal loans to start your business, such as personal credit cards, a home equity loan, or other personal credit, lower interest rates might make the calculations more attractive -- and make that debt easier to repay as your business picks up steam.
They're going to have trouble refinancing their debt when it eventually comes due. Also too, you have a ton of private equity capital that's going out there and looking to take on loans that maybe regional banks won't want to take on. There's still a lot of capital flowing into real estate, maybe not the speed it was in 2021.
You can also in the act of doing that, experienced tax benefits and amortization of debt if it was used to finance the purchase. You look at things from capital appreciation, stocks, ultimately they have the potential to increase in value over time. What kind of capital, what kind of experience? That was nice and succinct.
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