Guide to Startup Fund Raiser
Fund plays the most important role for any business and when it is a start-up it matters even more! In this article we are going to provide a guide for the Start-ups to raise their fund. Blog: https://financebuddha.com/blog/guide-startup-fund-raiser
Fund plays the most important role for any business and when it is a start-up it matters even more! In this article we are going to provide a guide for the Start-ups to raise their fund.
Blog: https://financebuddha.com/blog/guide-startup-fund-raiser
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Second Mortgage<br />
Second Mortgage is also known as the Home Equity Line of Credit (HELoC).<br />
These loans generally tap in<strong>to</strong> the locked up equity you may have in your home.<br />
To know that how much you can borrow from a second mortgage, take the value<br />
(price) of your home and deduct the value of any outstanding mortgage from it.<br />
You should be aware of the fact that some lenders may only lend only up <strong>to</strong> 70 –<br />
80% of the value of the home, only a few is ready <strong>to</strong> lend you the full value. One<br />
of the advantages of taking a second mortgage is that the interest rate tends <strong>to</strong> be<br />
lower than any others financing. This is due <strong>to</strong> the fact that -the bank knows they<br />
can easily recover the value of the loan by foreclosing on your property if you are<br />
not able <strong>to</strong> meet your interest payments.<br />
Venture Capital<br />
Venture Capital is basically financing that inves<strong>to</strong>rs provide <strong>to</strong> startup companies<br />
and small businesses who have strong potential and long term growth as well.<br />
Venture Capital generally comes more from the angel inves<strong>to</strong>rs, investment banks<br />
and other financial institutions who are ready <strong>to</strong> give money. However, it is not<br />
always done in form of monetary support, but apart from this it can be done in<br />
the form of technical or managerial expertise.<br />
However a risk fac<strong>to</strong>r is always involved in providing fund <strong>to</strong> the start-ups. But<br />
still there are many ways <strong>to</strong> reduce the risk fac<strong>to</strong>r, doing proper market analysis,<br />
understanding the cus<strong>to</strong>mers, having good staff can reduce all the risk<br />
fac<strong>to</strong>r. This works in favor of both the entrepreneur and the inves<strong>to</strong>r by reducing<br />
the risk fac<strong>to</strong>r and increasing the chances of business earning profits. There exists<br />
multiple ways for a startup <strong>to</strong> generate working capital and is very essential <strong>to</strong> take<br />
it forward and make it a full fledged entreprise.