5 Ways Companies Can Raise Capital


Are you in a position of needing to raise money for your company? There are many ways that you can go about scaring up the funds that you need. Today’s market is more lucrative than ever thanks to this myriad of new sources. Here are the top 5 ways that companies can make use of in order to raise the funds they require.

1. Get Help From an Expert SPV Service

You may wish to raise funds through the agency of a Special Purpose Vehicle (SPV). This is a special subsidiary that you create within the body of your company in order to isolate your total level of financial risk. To pull this move off, you’re going to need help from an expert in the field such as Assure SPV management services.

2. Pull Yourself Up By Your Own Bootstraps

Sometimes a business owner doesn’t even need to ask for help in raising capital from others. In some cases, it may be best to literally raise the money for your future from the efforts you are making in the present. This is a tactic known as bootstrapping. It’s a bit hard going for some but it can pay off in the end.

You can bootstrap to get the funds you need by digging into your own personal savings. You can also leverage the funds you are getting from your initial sales. This involves a bit of cannibalism and may take a while to see a solid result. But if you don’t want to involve outside help, it’s the way to go.

3. Raise Money Through a Crowdfunding Campaign

If you can’t fund your own growth at the present time, there are other ways to go about it. Instead of borrowing money at high rates, why not try a Crowdfund campaign? You can offer rewards in exchange for gifts of cash that will go into funding a new project or initiative that you are hoping to get off the ground.

You can also offer equity crowdfunding, although this may be more complex and less desirable. This involves offering a stake in your business in return for a timely and sizable investment. However you do it, crowdfunding is a good source of instant cash. A good campaign may be all that you need to get liquid again.

4. Make a Deal with a Venture Capitalist

One of the quickest ways to raise the needed amount of capital for yourself is to do a deal with a venture capitalist firm. This will be the type of investment that involves institutions that are set up for the very purpose of providing funds to businesses like your own.

The potential drawback here is that, if you are not careful, this may be a fast way to get in over your head financially. You will need to be very careful in the way that you accept funds and utilize them. If you play your cards right, this can be a way to expand very quickly.

5. Make a Deal with an Angel Investor

The last and rarest way to make money to create the capital you need is to rely on the mercy of an angel investor. This is a person who basically agrees to help your company get off the ground by supplying the needed funds. You can make a deal with them that involves paying them back or making them a direct co-owner.

It ought to be obvious why such a sweetheart deal is the rarest one of all. There are not many people out there who are willing to personally bankroll a new company through its expensive start-up stages. But if you can manage to find an investor of this type, the deal you strike can be beneficial to both parties.

Raising Money Doesn’t Have to Be Hard

You don’t have to put yourself on the brink of bankruptcy to raise money for your business. No longer do you have to borrow money at ruinous rates against your future. There are plenty of other methods to make use of that will save you time, energy, and money. The key is to find the plan that works for your needs.

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