Evaluation should include sources such as
- family and friends
- self-financing (i.e., bootstrapping)
- banks
- grants
- crowdfunding
- venture capitalists
- angel investors.
Evaluation should also include
- benefits and drawbacks of the various sources
- risk and reward of funding sources
- effectiveness of a particular alternative source to a particular business.
Process/Skill Questions:
- Why is financial planning important?
- What are the risks of borrowing from family and/or friends?
- What is the role of SBA in financing?
- What are the requirements to qualify for an SBA loan?
- What government agencies assist in debt-capital loans?
- What are some examples of angel financing?
- What are some sources of growth capital?
- Is venture capital a good source of start-up capital? Why, or why not?
- What role can grants play in financing a start-up venture?