Funding Sources by Company Stage Debt Equity Concept (Pre- revenue) Expansion (Strong Profitability) Founders, Friends & Family ($) Other Crowd Source.

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Presentation transcript:

Funding Sources by Company Stage Debt Equity Concept (Pre- revenue) Expansion (Strong Profitability) Founders, Friends & Family ($) Other Crowd Source Funding Grants (SBIR) Early (Revenue / Not profitable) Growth (Revenue / +/- profitable) Unsecured Personal Credit Angels / Angel Funds ($$) Venture Capital ($$$) Private Equity ($$$$) Grants (DOE, DOD,etc) Bank Lending Asset lending ( AR Factoring, PO Financing, etc) SBA Backed Lending Angels/ Seed Funds ($$) Private Equity ($$$$) Micro Loans Strategic Partner ($-$$$$)

Regional Equity Capital Sources Concept Stage Battleborn Fund Originate.com NCET2.org Early Stage Reno Angels Battleborn Fund Sierra Angels Sacramento Angels Vegas Valley Angels Vegas Tech Fund Growth Stage Hamilton Lane (NCIC) Sun Mountain Capital Technology Ventures Expansion / Buyout DCA Capital Berkshire Bridge Capital Brennan Capital Manage Northstar Investors Tregaron Capital

Regional Lenders & Debt Sources Seed Stage Nevada Microenterprise Initiative Peer-2-Peer Lending Prosper.com LendingClub.com Early Stage Few Commercial Banks (w/ SBA Guarantee ) RNDC – Rural Small Biz Loan Brokers Growth & Expansion Stage NV Collateral Support Program Commercial Banks Private Equity  DCA Capital  Sun Mountain Debt Fund

Alternative Financing Sources Grants SBIR/ STTR (SBIR.gov) NCIAA NCET2.org Crowdsource Funding Kickstarter.com IdeGoGo.com TechStars.com FundingLaunchPad.com Asset Based Lending (Accounts Receivables / Purchase Orders) ReceivablesExchange.com Bibby Financial

Debt vs. Equity DEBTEQUITY PROS CONS - Generally less expensive than equity - Interest can accrue - Assets can be leveraged - Can be relatively straightforward - Lenders have little voice in how you run your business - Can be best of both worlds for seed if convertible - Simpler legal docs - Interest payments eat into cash flow, working and growth capital - Accrued interest accrues - Terms act as a ‘deadline for success’ - Secured by company assets - Lender is in first position - Once a company is leveraged, it becomes less attractive to equity investors - Lenders provide little value add - Relatively flexible timeline for success - Does not inhibit cash flow, working capital, profitability, etc. - Aligned interest - Equity investors often add value to the business (experience, relationships, etc) - x% of something is better than 100% of nothing - Generally more expensive than debt in the long run - Hard to find - Bringing on equity investors is like a marriage - Equity investors can be highly involved in and opinionated on how you run your business – loss of autonomy - Equity investors want an exit - Complicated legal docs

* source: lendio.com