Venture Funding

1. All Money Comes with a Price—Know the Cost Beyond the Cash

Every type of funding—whether from a bank, investor, government grant, or community crowdfunding—has a cost. This might be:

• Interest payments, which can increase operating expenses.
• Dilution of ownership, which can reduce your value in the business.
• Loss of control or less room to make decisions.
• Reporting or compliance obligations, which add work.
• Pressure to grow faster than you’re ready for, which can deduce your ‘joy’ in the business.

Tip: Before saying “yes” to money, we will help you to address:

1. What does this partner want in return?
2. What does this funding commit me to, legally and operationally?
3. Is this a meaningful path to follow?

2. Venture Capital Is Not for Everyone—And That’s Okay

Venture capital (VC) is often viewed incorrectly. It is mainly intended for businesses that can grow quickly, and return large profits in a short time,  (typically 5–10x the investment in 5–7 years). Most micro and small businesses aren’t built for this, but yours may be! Remember, the lenders are businesses too. Even government programs, too, are designed to drive ‘growth’ for the broader economic good.

Tip: Don’t warp your business just to get funding. The funding must fit your business model and goals.

1. We will help you to explore various lending options.

3. Your Business Plan Is Your Funding Magnet

Boy, and are we big on that one! No one funds ideas—they fund clear, credible plans. That means:

• Understanding your market,
• Having realistic financial projections,
• Showing how the money will be used and repaid (or generate a return),
• And proving you understand your risks and how you’ll manage them.

Here, with us, you can rest fully assured that you’re in very capable hands. Tip:

1. Consider your business plan to be a trust-building tool. If you wouldn’t fund your plan, neither will anyone else.
2. Furthermore, do not share it fully unless there is an absolute need to do so. We will give you an excellent Executive Summary that has all the highlights. The details, though, keep them close to your chest. 
3. Never share your plan freely. There is hardly ever a reason to do so. When you do, these people must be highly trusted contacts and associates, or individuals who must have the plan.

4. Consider Grants and Other Non-Dilutive Capital Options

‘Non-Dilutive’ is fancy language for ‘free money’, of sorts. Yes, no money is ever really free, but many organizations with deep pockets and a commitment to social justice see value in enabling small businesses to succeed, and for the very characteristics described in the parallel discussion. Yet, many small businesses miss out on these free or low-cost opportunities to access capital because. They mistakenly think those options are only for non-profits or big companies. Governments, incubators, and community foundations are common sponsors for:

• Startup grants,
• Equipment or hiring subsidies,
• Innovation funds, and
• Competitions with cash awards.

Tip: Invest time in learning what is required to write strong grant applications—it pays better than cold-pitching VCs for most small ventures.  We can help with:

1. Helping you to flesh out the merits of a grant request, as part of your business plan process,
2. Finalizing your grant writing once the basis of the grant application is clear.

5. Your First Investors Are Often in Your Circle

Before going to banks or investors, look at your “first funders”:

• Friends and family,
• Customers who prepay,
• Community supporters who believe in your mission.

Crowdfunding platforms (like Kickstarter or GoFundMe) have opened new doors for validating products and raising capital. Tip: Start small, build trust, and turn early supporters into champions. Your funding network will grow as your credibility does. 

1. We can also help you to size your opportunity to endure your Crowdfunding is a professionally executed job.
2. As supporters of crowdfunding Creators, we strongly advise against launching a poorly conceived program.