What Type of Funding is Best for My Company?

What type of funding is best for my company? From The Startup Garage
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Welcome to video Fridays
from The Start Up Garage


A place where Tyler Jensen, The Startup Garage’s founder, answers questions directly from viewers

Key Take Aways From Video:

1) There are really three main sources of funding, and to determine which source is right for you, you need to know what stage your company is in and how much money you need.

2) Those 3 main sources for funding are:
– Friends, Family, and Founders
Angel Investors
– Venture Capitalists

3) Generally family, friends, and founders are the first one and they invest anywhere from $25,000-$250,000 and they do it right as the idea is getting started.

4) Angel investors typically invest $250,000 – $1,000,000 and they want to invest after you got a business plan going, a team, maybe you’ve got a prototype developed.
They want to see some traction with your business.

5) The last stage is a Venture Capitalist. It’s also called a Series A. Then you could have Series B, C, and so on.

Complete Transcript below:

Question= “What type of funding is best for my startup?”

Tyler Jensen: Yes, this is a very common question that we get all the time, and it can be totally overwhelming and there’s all this information out and it’s really hard to get through all the details of it, so I’m going to try and simplify it in the answer. There’s really three main sources of funding, and to determine which source is right for you, you need to know what stage your company is in and how much money you need. Those 3 main sources for funding are:

1. Friends, Family, and Founders

2. Angel Investors

3. Venture Capitalists

And they go in that order to determine your stage. Generally family, friends, and founders are the first one and they invest anywhere from $25,000-$250,000 and they do it right as the idea is getting started. The next one is angel investors and they typically invest $250,000 – $1,000,000 and they want to invest after you got a business plan going, a team, maybe you’ve got a prototype developed — They want to see some traction with your business. The last stage is a Venture Capitalist. It’s also called a Series A. Then you could have Series B, C, and so on. That comes along once you’ve taken that angel money and really gotten some customer traction and you’ve proved your model, you’ve proved your metrics, then the Venture Capitalists come in and that money’s really used to scale out, whether that be nationally or internationally it’s really for a large scale plan.

Nicole: If you have a question, feel free to post it below and we’ll see you next Friday.

Whether you have a question about your business plan or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!
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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.