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VENTURE CAPITAL FINANCING
Showcase your company or business plan to
qualified high-net worth investors with terms that are exciting for
both parties.
Raising money for your venture can be a confusing
and difficult process. The questions that arise are many, and your
answers to these questions can affect the future of your company.
Questions such as:
• How do you raise money?
• Whom do I approach to raise money?
• How do I approach these people?
Most entrepreneurs believe there are only two
methods of raising money:
1) Approaching a lending institution and
acquiring debt
But using debt can be a high risk exercise:
a). Most lending institutions will need
collateral against the money they will lend you. Collateral is
property that is deemed acceptable as security or a loan or other
obligation. In most cases, the only property acceptable for a loan
or new business is the owner’s personal property. And risking your
personal property against your business’ debt is considered very
high risk for most people.
b). As many businesses fail, lending institutions
usually charge high rate of interest against the loan to leverage
their losses. Some banks will charge as much as 15% on loans greater
than $1,000,000. Paying back the interest on the loan can be
extremely challenging to a company just getting started.
2) Selling equity in your business
This can cause you to lose ownership and control
of our own company. Equity stock or any other security representing
an ownership interest can raise many more questions:
a. how much is my business worth right now? b. how much equity do I give investors? c. how much control of my business do I give investors?
The answers to these questions can affect your
ability to raise money and relationships with your investors for
years to come.
THE THIRD ALTERNATIVE: Raising
money via Convertible Debt
Convertible debt is the ability for a small
business to issue a loan, or debt obligation, to investors. But this
loan can be turned into equity generally when the small business
obtains future financing or generates a target revenue number.
It is sometimes very difficult to determine the
current worth of your business, and this determination is usually
when the deal falls through. Convertible debt is an excellent way to
raise funds without setting a valuation on your business, as well as
protecting early investors from dilution in the next round of the
company's financing.
Click here for
additional information.
Raising money can be a
demanding and confusing experience, and our mission is to help make
the process easier and less costly for the business owner. We
completely believe we can offer entrepreneurs more attractive
methods for raising money than by simply selling their dream, or
leveraging their family’s home.
Northern Range Capital Corp is dedicated to helping entrepreneurs
and business owners realize their business financing goals by
working together to determine what we can do to maximize the
potential of their business.
Our online platform provides a
marketplace where private companies find angel investors and
investors find high return opportunities across
North America. There are more than 2,000 investors in our
network, and that number grows every day.
For more information on our
Venture Capital Consulting Process
click here
CLICK HERE to
submit your application and get started today
with the next step in success for your business!
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