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Identify the different methods of early-stage funding and how to access complementary resources. examples of complementary...

Identify the different methods of early-stage funding and how to access complementary resources. examples of complementary funding

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Let First Talk about the different methods of early stages . The early stages of funding or "Seed funding" is something new ventures look upto and poses challenges for new entreprenuers to arrange such funds or resources. These early stage of any start-up or venture is called the "Seed Stage " and you need funding to grow and do your business. As a new entrant into the market these ventures can raise funds through :

  • Crowdfunding - Where is public pool in thier money.
  • Angel Investors or Super Angel
  • A micro-Venture Capital firm - Firm that invest institutional money in projects or small business thatb are unable to attract traditional venture capitalist.
  • Venture capital - Institutions pool their money to create large pool of venture funds.
  • Business accelerator funding - Small seed investments.
  • Start-up Incubator seed Funding - Special funding program for startups for fixed period of time.
  • Corporate seed funding - Big corporates offers seed capital or funding for new startups.

Other than rasing funds through venture capital and other means of funding mentioned above complementary recources or funding can aslo be arranged by venture debt and other means of debt which can be obtained through banks and other financial instutions. Loan also can be raised by means of mortage and other means such as grants and secured loans which can be obtained by securing any asset of the firm or business.  

Some examples of complementary funding would be :

  1. Secured Loans : Loans that can be obtained from financial institution by using company's asset like cars , property as security.
  2. Unsecured loans : loans also can be obtained from bank but it has be to provided with personal guarantee and must have a good credit rating.
  3. Venture Debt : Also known as venture lending is also a complementary source of funding, it generally consists of 3 or 4 year of long term loan.
  4. Grants : Government , universities and other institutes also provide small business grands that can also act as a complementary source of funding.

jeff jeffy answered 2 years ago
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