Business idea / Bioinformatics startup
- 3. QUESTION # 2 Personal Equity Dept • it might be tempting to just apply the same principles you use for your personal finances to your business • Equity financing is the process of raising capital through the sale of shares. • Equity financing places no additional financial burden on the company, however, the downside is quite large. • Debt financing occurs when a firm raises money for working capital or capital expenditures by selling debt instruments to individuals and/or institutional investors. • personal finance can mean devastating losses, as in your car or even your house. • Companies raise money because they might have a short-term need to pay bills, or they might have a long-term goal and require funds to invest in their growth. Debt financing involves the borrowing of money
- 4. WHAT FACTORS WOULD YOU CONSIDER IN ORDER TO DECIDE THE FINANCING YOUR INTENDED NEW BUSINESS VENTURE NEEDS • Risk • Cost • Control • Long term vs short term Browing
- 5. HOW WOULD YOU FINANCE YOUR BUSINESS KEEPING ONLY RIBA-FREE OPTIONS IN MIND • Savings • Credit cards • Friends and family • SBA Microloan Program • Angel investors • Crowdfunding • Business loans and lines of credit • Factoring
- 6. QUESTION # 3 Business idea Bioinformatics Tech Startup Attached elevator speech
- 7. QUESTION # 4 As a venture capitalist interested in investing in new ideas: a “good idea” is not enough. A number of additional factors weigh into venture capital decisions, including the team, the proof of concept, the size of the market, and the terms of the investment. • Leadership Ability • A Strong Team • Reasonable cash burn rate • Innovative product • A clean cap table • A Detailed Plan for How the Capital Will Be Put to Work •