FINANCING FOR STARTUPS

FINANCING FOR STARTUPS

1. Venture Capital, Business Angel, Crowdfunding, Crowdlending, etc. there are several forms of financing among which you can choose to get funding for entrepreneurship projects and startups.

2. Bank loan This is the most popular credit and is also the most common loan used by companies. It is a loan, with the condition of repayment and interest. It is therefore advisable to take into account the interest rate, the repayment term and the grace period.

3. Venture Capital Or venture capital, is a type of financial operation that is done through Venture Capital Companies (VC), which invest in startups with high risk and growth potential, in exchange for a percentage of the company (20% or 30%). Occasionally, they will also hold a controlling position within the company. The companies in which they invest are usually those that present a novel business model or discover a new technology, seeking a high return on their investment.

4. Business Angels Also known as proximity investors or angel investors, they are people who, in addition to capital, provide knowledge, contacts and experience to guide the project, seeking to obtain future results. Normally, their investments range from 20,000 to 250,000, seeking a high return (10 times or more), in a period of about 5 years from the original investment.

5. Crowdsourcing Crowdsourcing is a method where micro-patronage and outsourcing are mixed. Generally through a Marketplace, companies open a call for a specific task to an undetermined number of suppliers, choosing the most appropriate ones.

6. Crowdfunding Micro-patronage, crowdfunding, crowdfunding are some of the ways to call this method, which is becoming more and more fashionable. It is a type of collective financing, of people or entities that make their contributions in exchange for something, usually symbolic, making possible the execution of the project.

7. Crowdlending Also called peer-to-business lending (p2b lending). It is a type of crowdfunding, in which companies offer a return or an interest rate, usually somewhat higher, to potential investors, thus obtaining financing without the need to go to traditional financial institutions.

8. Factoring Factoring consists of the assignment of the collection rights of a company's trade receivables (invoices, receipts, promissory notes, bills, etc.) in favor of banks, savings banks or other specialized companies, which take charge of their management and assume the risk of the operation, in exchange for a commission and interest, depending on the time until maturity.

9. Confirming Confirming, or assignment of payments to suppliers, is a type of financial service consisting of managing a company's payments to its suppliers, which includes for the creditor the possibility of collecting payments prior to their due date, generally 60 days.