1. Chapter- 10 Getting Financing & Funding

2. Importance of getting financing or Funding
1. Cash flow services 2. Capital investment 3. Lengthy product development cycle

3. 1. Personal Funds 2. Friends and Family 3. Bootstrapping
Sources of Personal Funding
1. Personal Funds 2. Friends and Family 3. Bootstrapping

4. Sources of Equity Funding

5. Own Fund
Borrow
Informal Lender

6. Business Angels

7. What defines a business angel?
Angel investors are easily distinguishable from other types of investors, such as venture capitalists, through several factors: They invest their own money into the project, less than would be invested by a venture capitalist They make their own decisions concerning investments They invest according to the viability of the project, with expectations of future gains Their main objective is to receive a return on their investment There are different types of business angels and their relationship to your business. They can be affiliated; which can include suppliers, customers, or even competitors. They can also be nonaffiliated; which means they are individuals without a previous connection with your company. Business angels can be an excellent way for a new company to gain ground quickly and step into a new stage of growth. By providing capital and guidance, the investment can have a substantial impact on the business.

8. Angel Investors in Bangladesh

9. Venture Capital

10. What is 'Venture Capital'
Venture capital is financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks and any other financial institutions. However, it does not always take just a monetary form; it can be provided in the form of technical or managerial expertise.
Though it can be risky for the investors who put up the funds, the potential for above-average returns is an attractive payoff. For new companies or ventures that have a limited operating history (under two years), venture capital funding is increasingly becoming a popular – even essential – source for raising capital, especially if they lack access to capital markets, bank loans or other debt instruments. The main downside is that the investors usually get equity in the company, and thus a say in company decisions.

12. General Partner

13. Stages (or Rounds) or Venture Capital Funding
Seed
Early Stage
Formative Stage
Later Stage
Balanced-stage

14. Stages (or Rounds) or Venture Capital Funding
Seed funding
Start-up funding
First-stage funding
Second-stage funding
Mezzanine financiering
Buyout funding

15. Venture Capital Firms in Bangladesh