page 1 hatemalo nepali students group funding of an enterprise sushil poudel ca ipcc
TRANSCRIPT
Page 1Hatemalo Nepali Students Group
Funding Of An Enterprise
Sushil PoudelCA IPCC
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Source: Entreprenure
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Initiation with the plan
Why Plan?
•Execution is critical•Provides clarity of purpose•To avoid mistakes•To counterbalance emotions
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My money vs Your money
Self funding savings proceeds of old
business personal loans sales of personal
tangibles Funding through investors
equity investors debt investors
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Self funding and bootstrapping
What is bootstrapping?
pulling oneself up with bootstrap »doing more with less
priority for use of available funds to creation of funds
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Strategies for bootstrapping
Be frugal not cheapTrade equity for servicesPerception vs realityBe a junkyard dogUse others resourcesDifferentiate wants and needs
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Success Through bootstrapping
Josh James's Domo raises $125 million from TPG, others
“we feel there is
inevitability around our business”
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Venture Capital
Definition
Money provided by investors to startupwith perceived long-term growth potentialmostly comes from group of wealthy investors, investment banks and other financial institutions
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Initial funding
Private investors -angles or bands of angels -rapidly growing part of private equity market -mostly equity funding, or convertible debts
Friends and family
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Flying with angels
Angel Investors
Individuals who invest high risk capital( less than
50% have positive return).
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Funding on later stage
-institutional investors
-traditional venture capital firms
-pooled funds of LP’s
-relatively few deals per year
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Funding on growth stage
-strategic or corporate venture capitalists
»investment from CO’s with same core business
-overseas investors
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Crowdfunding
Enterprise addressing social issues
Effective with simple business concept
Page 14Hatemalo Nepali Students Group
Other ways of funding
Requesting a small-business grant
Negotiating an advance from a strategic partner or customer
Leveraging through credit card
Hatemalo Nepali Students Group Page 15