Start-up Newsletter September 2016
Start-ups and Established Companies: A Match Made in Heaven
Cash is the lifeblood of every emerging company, and is required to launch an entrepreneur’s dream, product and passion. How can start-ups fund their companies with cash and provide for other required resources early on? While the goal of every business endeavor is to generate revenue and operate at a profit, it can take varying lengths of time to develop a product or service line to the point at which it is self-sustaining.
In the interim, the cash must come from somewhere. Once the founders have exhausted their personal savings and investments, and probably their friends and families for that matter, most start the capital raising process in the traditional places: angel investors, venture capital groups, private equity groups, and banks. These can be very good sources of funds, however, there are times they cannot provide the level of cash needed or may not be able to make a deal happen.