4.4

Physical document of future payment order with legal guarantees. It can be discounted.

loans to withdraw up to the limit established by the bank

Capital’s different forms in a business

Business Angels are used as seed capital.

loans through personal collateral

Factoring and Leasing are asset-based finance

Using Personal Savings to finance a start up is also a threat of undercapitalization

ICO, CDTI, ENISA in Spain & Sodercan in Cantabria (loans & subsidies) are examples of …

Angel In play a huge role in the economy, and in many countries are the largest source of external funding, after family

may be backed by an irrevocable letter of credit from a reliable bank

Around how many months do you need to do Crowfunding based on rewarding

smaller banks are more flexible regarding payments terms

A VC investor provides additional expertise in various areas: strategy, human resources management and so on

an anticipated collection of invoices or trade effects

Which of these sources of financing for a startup have a High Risk/Return

Venture capital investors can't be financial partners

Fund raising is a time consuming task and an ongoing process.

No time limit for having a stake in a start-up.

Financing that an entrepreneur borrows and must repay with interest.

Official Loan Guarantee Programmes aren't regulated by law.

Stages of investment in a start-up

complying with the legal, accounting and administrati ve requirements, start of the transition period

Gofundme, Kickstarter and Indiegogo are examples of

An online payment system that allows you to accept payment from customers by credit/debit card.

secured assets: accounts receivable, inventory, equipment and real estate

sectors with more VC investment

loans as basic unsecured

Asset Based Finance (Low risk/return)

The goal is to obtain debt with a lower cost (at a prime rate)

Crowdfunding based on shares: CROWDEQUITY

Designed by the Government to help entrepreneurs who have problems in obtaining capital from traditional sources.

mintos, envestio, bondora are examples of

FACTORING: the factor collects the money from the firm’s customers at the due date of the invoices.

Difficulties to finance a startup

Refers to the process of selling or disposing of the venture capitalist's ownership stake in a company. (High Value)

can replace short-term bank loans

 the past records and performance of a company are important for

A VC investor also offers contacts to potential customers, providers and partners;

Crowfuding (debt) is an alternative debt of low risk/return

(Equity) potential investors. Apparently easier to negotiate with.

VC investor as a shareholder isn't seen as positive. It is not a constitution of a stable shareholding of a start-up

For a financial vc investor Complying with a business plan is the must.

What CROWFUNDING platforms are popular in SPAIN?

Traditional bank loans and credits: short-term

A lease is an agreement whereby the owner of an asset (lessor) provides a customer (lessee) with the right to…

venture capitalists invest in a startup, they provide funding in exchange for an ownership stake in the company. Low v.

Instruction to the bank to debit the customer's account. There is a deadline for repayment.

short-term loans, intermediate- and long-term loans

Equity is any form of wealth employed to produce more wealth.

Microcredits aimed at two types

Interested in a start-up which activity is closely related to its main business.

Venture Capital (VC) Include Business Angels as private investors.

Private organizations that accumulate capital to purchase equity positions in young businesses with potential to grow.

Crowdfunding based on Rewarding means

wealthy individuals who invest in start-ups in exchange for equity stakes in the company.

Stages: (1) Preparation of the operation, Should be run entirely by the entrepreneur

Leasing helps to reduce the long-term capital requirements of their businesses and improve their cash flow

Physical document with postdated payment date. At maturity = check. Can be discounted.

the customers who order should be creditworthy

It is mandatory to present financial solvency and a business plan that shows that there is an expected profitability

Asset-based lending is attractive for manufacturers or others w stock inventory

their contribution is donation and not investment

A VC investor doesn't assume business risk he is also not committed to the success of the business;

Debt doesn't allow the company’s owners to maintain their ownership.

sending of the business plan, analysis and evaluation of the startup company by the investor

a common bootstrap mechanism to finance use and purchase of expensive assets;

Which of these sources of financing for a startup have a Medium Risk/Return and are considerered Hybrid Instruments

list of investors to contact to, documentation with a brief description of the opportunity, declarations of interests

the VC leaders worldwide: Keiretsu Forum and New Enterprise Associates.

A financial advantage of VC is they do not ask for collaterals;

In which sectors do Business Angels invest?

Finnish yoga platform Yoogaia successfully closed their crowdfunding round via FundedByMe at €100K is an example of

a supplier short-term financing mechanism;

Trade credit is an extension of traditional credit and credit mitigation tools

Business Angels usually provide smaller amounts of finance (EUR 25.000 to EUR 500.000) at an earlier stage.

Interested in any start-up which shows a high potential of growth and projects extraordinary returns.

Intensive business and personal development programmes (structured)

Physical document for immediate collection. It implies management with the bank and waiting 2/3 days to get the money

Based on LOANS: CROWDLENDING

For an Industrial VC investor, investment is seen as a strategic alliance.

Business angels provide financing but not manangerial experience

Loans with a preset limit

VC investors are interested in any potential profitable business opportunity

negotiation of the agreement; completion of the due diligence

personal investment of the founders called risk capital, no scheduled repay the shareholders keep control over business

Financial payment management service: the creditor can anticipate and transfer the risk to the issuing bank.

Order the bank to charge our account and pay to another account of a third party. Safe, fast & cheap. NOT immediate.

a specialised institution (‘factor’) buys accounts receivable from a firm (‘seller’) and pays for them in two parts:

a transaction with assets as a primary source of repayment

Traditional bank loans and credits: long-term

a working capital advance to cover part of the production of a good or service demanded by one or +1 specified customer

Its goal is to receive profits and divest on “a fixed date”.

secured assets:

What platforms of CROWDLENDING are popular in SPAIN?

the most economic source of financing. (Equity)

Stages of investment in a start-up: the main financial statements,business plan,entrepreneu assess the value of the firm

Accelerators are very effective to attract investors for further development

It is not about collecting as much as possible but about covering the specific financing needs detected previously

Payment/collection service provider for parties to an e-commerce transaction.

The additional equity through VC improves the start-up’s borrowing capacity