Investment Capital
Investment capital can come from a variety of sources, including individual investors (accredited and non-accredited), friends and family, venture capital firms, family offices. Investment capital is often the first major investment received beyond the typical bootstrapping required to get a business off the ground. There are many approaches toward raising investment capital from equity crowdfunding to a more traditional venture capital raise.
When determining the best path to raise capital for your company, it is important to consider the potential for return to your investors, the level of risk involved, and the stability of your company and the overall cost of capital.
Growth Capital
Growth capital or expansion capital is a form of financing that is provided to more mature companies that need to scale operations, restructure or expand into new markets/products. Unlike traditional forms of financing, such as debt or equity, growth capital is focused on providing companies with the resources they need to expand accelerate growth, rather than simply providing financial stability. In order to secure growth capital, companies must be able to demonstrate a strong track record of growth and a clear plan for how they will use the capital to expand their operations. They must also have a well-defined business model and a strong management team in place. Growth capital is an important form of financing that can help companies take their businesses to the next level. If you are interested in securing growth capital for your company, it is important to understand the different sources of growth capital and the requirements that are typically associated with each source.
If you're exploring a potential capital raise and need support, book a call to learn about how The Inside Man can support.