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Raising Capital PDF Print E-mail

Now that you have a complete venture capital quality plans, set of financials, and an investor presentation, now what? Unlike some business plan consulting firms, BHVC works with clients from beginning to end, and a good plan isn't worth much unless you can use it to capitalize your business. BHVC is proud of it's track record of getting the majority of its clients funded, and we will work with you to locate, contact, present, and negotiate with the various sources of capital.

Raising capital is the most critical activity in getting a business started, for obvious reasons.  One thing to keep in mind is that this doesn't happen overnight, and it doesn't happen all at once.  Expect the capital raising process to take anywhere from a month to six months once your business plan is complete.   Even then, capital raising activities are likely to continue long after operations have started as you seek additional funding to expand your business. 
 
Capital can come from many sources and it is important to understand these sources and take advantage of the many resources at your disposal.  Typically, the progression of capital goes as follows:

  1. Seed Capital (personal savings, personal credit cards)
  2. Friends & Family - Utilizing your personal network. 
  3. SBA Loans - Bank debt specifically for small businesses.
  4. Grants - Small business grants, tech grants (NSF, DoD, etc)
  5. Bridge Financing - Temporary private debt funding, typically convertible to equity. 
  6. Angel Funding - Private investors who invest smaller amounts into emerging companies. 
  7. Venture Capital - professional equity investors who typically invest larger amounts. 
  8. Private Equity Firms - usually only get involved in very large deals. 

Many of these investors/lenders invest only in specific industries or in specific geographic regions or in certain monetary ranges.  It's important not to waste your time (or theirs) pitching you business where there isn't a good match to begin with. 

You will likely pitch your business to many potential investors before all is said and done. Of those, only a handful will likely show interest for one reason or another, and only one or two are likely to make a term sheet offer.  Even then, you will have to go through the due diligence process before you receive your funding. 
 
Blue Horizon can walk you through this confusing process, help get you in front of the right investors or lenders and help give you the best chance of getting the funding you need in a timely manner.  Remember, almost two-thirds of Blue Horizon clients end up getting the funding they seek in one form or another. 

 
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