Page 1 Hatemalo Nepali Students Group Funding Of An Enterprise Sushil Poudel CA IPCC
Page 2 Hatemalo Nepali Students Group Source: Entreprenure
Page 3 Hatemalo Nepali Students Group Initiation with the plan Why Plan? Execution is critical Provides clarity of purpose To avoid mistakes To counterbalance emotions
Page 4 Hatemalo Nepali Students Group 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
Page 5 Hatemalo Nepali Students Group 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
Page 6 Hatemalo Nepali Students Group Strategies for bootstrapping Be frugal not cheap Trade equity for services Perception vs reality Be a junkyard dog Use others resources Differentiate wants and needs
Page 7 Hatemalo Nepali Students Group Success Through bootstrapping Josh James's Domo raises $125 million from TPG, others “we feel there is inevitability around our business”
Page 8 Hatemalo Nepali Students Group Venture Capital Definition Money provided by investors to startup with perceived long-term growth potential mostly comes from group of wealthy investors, investment banks and other financial institutions
Page 9 Hatemalo Nepali Students Group 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
Page 10 Hatemalo Nepali Students Group Flying with angels Angel Investors Individuals who invest high risk capital( less than 50% have positive return).
Page 11 Hatemalo Nepali Students Group Funding on later stage -institutional investors -traditional venture capital firms -pooled funds of LP’s -relatively few deals per year
Page 12 Hatemalo Nepali Students Group Funding on growth stage -strategic or corporate venture capitalists » investment from CO’s with same core business -overseas investors
Page 13 Hatemalo Nepali Students Group Crowdfunding Enterprise addressing social issues Effective with simple business concept
Page 14 Hatemalo 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