FINANCING

YOUR VENTURE
APOYA, AGUILAR, HOMBRE, MANGILIT
WHY MOST NEW VENTURES NEED
FUNDING?
 Cash flow challenges
 Capital Investments
 Lengthy product development cycles

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SOURCES OF FINANCING

 Personal Funds
 Traditional Debt (Bank loan)
 SBA Guaranteed loan
 Angel Investors
 Private Offerings
 Venture Capitals (VC)
 Public Offerings (IPO)
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PERSONAL FUNDING
SOME SOURCES OF PERSONAL
FUNDING:
 Cash/Savings
 Friends & Family
 Bootstrapping techniques

BOOTSTRAPPING
Finding ways to avoid the need for
external financing through creativity,
ingenuity, thriftiness, cost-cutting or
any means necessary.
 Example: Buying of used instead of
new equipment.

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 PREPARING TO RAISE DEBT OR EQUITY CAPITAL

Determine
Develop
EQUITY a
Determine
DEBT the type of
 Bank loan strategy
 Investorfor
how much financing or
 Allows you to maintain  engaging
Money is exchanged for
moneyandiscontrol
ownership funding that partial ownership
potential
needed
 Repayment with interest is the most  Not paid back
investors
 Cheapest way to grow appropriate  Shareholders
 Huge benefits beyond
the money
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 DEBT VS. EQUITY

DEBT EQUITY
 Bank loan  Investor
 Allows you to maintain  Money is exchanged for
ownership and control partial ownership
 Repayment with interest  Not paid back
 Cheapest way to grow  Shareholders
 Huge benefits beyond
the money
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 SBA GUARANTEED
LOANS

 Does not lend money, it

guarantees the loan  Individuals who invest their
 It sets guidelines for loans personal capital directly in
made by its partnering lenders start-ups

ANGEL INVESTORS

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 VENTURE CAPITALISTS
(VCS)
• An investor that provides
capital to firms exhibiting
high growth potential in
exchange for an equity
stake.
• Invest in high growth
potential ventures, but not
generally at the start-up
stage
• VCs fund fewer deals than
angels
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 PRIVATE EQUITY PRIVATE PLACEMENT
 Similar to VC, but much  Raises money
larger deals through a syndicate
 Limited partnerships that of “accredited
buy and restructures investors”
companies that are not
publicly traded

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 INITIAL PUBLIC
OFFERING (IPO)
A company’s first
sale of stock to the
public where its stock
is then traded on one
of the major stock
exchange.
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THANK YOU !
TEAM

AIRA MHYCA AGUILAR PRINCESS APOYA ANNABY HOMBRE PAULINE MANGILIT

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