The Different Avenues Chapter 2 MAGIC TOUCH CONFERENCE Raising Start-up Capital The Different Avenues Chapter 2

Learning Objectives At the completion of this session, you should be able to: Positively exploit the different sources of capital available to you.

What is a Start-up Capital? Definitions What is a Start-up Capital? also known as seen money, it is money required to start up a new business.

The Different Sources of Capital Your Own/Company’s cash Equity Debts Convertible Notes Grants /Start-up Competitions

Your Own/Company’s cash Savings, Salary, positive cash flow Minimizing Salary Expenses Keeping your day job Positive Chas flow form an existing company.

Equity This involves exchanging shares for money. Equity capital is typically raised via numerous rounds of financing based on the company’s development stage and needs.

Debt This involves receiving a loan that must be paid back with a specific period of time. It could sometimes attract interest. And could be very attractive for founders who wish to maintain ownership of their companies

Convertible Notes investors loan money to a startup and instead of expecting the money back with interest, they receive shares in the company at a discounted rate..

Grants & Start-up Competitions This is usually a great way to raise start-up capital since money is provided free of charge. Winning a startup competition not only enhances a company’s credentials and publicity, but also provides a decent source of capital

Other Sources of capital Open discussion

The End Thank You for your time