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In: Finance

How can a new start-up company obtain the necessary funds for growth?

How can a new start-up company obtain the necessary funds for growth?

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Expert Solution

A new start up company can obtain necessary funds for grow by first developing a full business plan of their company about what they basically do, what is their business plan, business model, current revenues, forecasted revenues, cash flows, current investors, capital structure etc and then further pitching the same to the following :-

1. Venture capital firms - Venture capital firms do invest in early stage seed development companies on the basis of criteria like their enterprise value, structure etc. They Invest in series like $100,000 per early round of financing.

2. Crowd funding startups - There are various websites which croud fund capital and provide it to startup companies on the basis of certain eligibility criteria

3. Angel investors - these are high networth individuals and prefer to invest in early stage companies and incubators if they like their business plan

4. Friends and family - You can approach your friends and families too in the same way Aliababa grew up in the pre ipo stage

5. Banks and financial institutions - banks and financial institutions provide capital to early stage startups .

I hope this helps too

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Took real efforts

thanks & Regards

jeff jeffy answered 2 years ago
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