Funding Comparison

Need help with my Business question – I’m studying for my class.

Below is a chart comparing funding methods used by small business.

The chart compares and contrasts requirements and agreements necessary to obtain the funding. They appear in the chart in the order below

Funding option #1 is Bootstrapping

Funding option #2 is Banks/financial institutions

Funding option #3 is Factoring (Accounts Receivable financing)

Funding option #4 is Angel investor

Funding option #5 is Incubator firm

Funding option #6 is Venture capitalist

Funding option #7 is Small business association

Funding option #8 is Web-based Crowdfunding site

Do complete the necessary details within the chart below.

Option 1

Option 2

Option 3

Option 4

Option 5

Option 6

Option 7

Option 8

Type of Financing

Bootstrapping

Debt Instrument: Bank Loan

Debt: Factoring A/R Financing

Equity Instrument: Angel Investor

Equity: Business Incubator

Equity Instrument: Venture Capitalist

SBA or State Grants or Loans

Kickstarter: Web-based Crowdfunding site

Defined

Requirements

Advantages

Disadvantages

Sources

Anonymous (2013) Accounts Receivable Financing. Investopedia. Retrieved March 24, 2013 from http://www.investopedia.com/terms/a/accountsreceiv…

Anonymous (2013) Angel Investors. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/a/angelinvestor….

Anonymous (2013) Bootstrap. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/b/bootstrap.asp#…

Anonymous (2013) Equity Financing. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/e/equityfinancin…

Anonymous (2013) Facts about Government Grants. SBA. Retrieved March 24, 2013 from http://www.sba.gov/category/navigation-structure/l…

Anonymous (2013) Loans. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/l/loan.asp#axzz2…

Anonymous (2013) Incubator Firm. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/i/incubatorfirm….

Anonymous (2012) Types of Debt Financing for Small Business. NFIB. Retrieved March 24, 2013 from http://www.nfib.com/business-resources/business-re…

Anonymous (2013) Venture Capital. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/v/venturecapital…

Chaafkin, M. (April 2013). Kickstarter can fund your dreams. Fast Company, 174, 92.

Mariotti, S., Glackin, C. (2013) Entrepreneurship: Starting and operating a small business. 3rd ed. Upper Saddle River, NJ: Pearson

– Effectual Entrepreneurship (2nd ed., 2017) by Read, Sarasvathy, Dew, & Wiltbank. Publisher: Routledge (Paperback ISBN: 9781138923782; E-book ISBN: 9781315684826)

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