4.4

Gofundme, Kickstarter and Indiegogo are examples of

mintos, envestio, bondora are examples of

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

Difficulties to finance a startup

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

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

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

Microcredits aimed at two types

Intensive business and personal development programmes (structured)

can replace short-term bank loans

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

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

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

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

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

Based on LOANS: CROWDLENDING

Crowdfunding based on Rewarding means

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

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

loans through personal collateral

loans as basic unsecured

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

Stages of investment in a start-up

What CROWFUNDING platforms are popular in SPAIN?

a supplier short-term financing mechanism;

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

Capital’s different forms in a business

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

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

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

the customers who order should be creditworthy

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

Venture capital investors can't be financial partners

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

Business angels provide financing but not manangerial experience

Official Loan Guarantee Programmes aren't regulated by law.

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

the most economic source of financing. (Equity)

What platforms of CROWDLENDING are popular in SPAIN?

negotiation of the agreement; completion of the due diligence

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

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

an anticipated collection of invoices or trade effects

loans to withdraw up to the limit established by the bank

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

In which sectors do Business Angels invest?

Financing that an entrepreneur borrows and must repay with interest.

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

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

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

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

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

Accelerators are very effective to attract investors for further development

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

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

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

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

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

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

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

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

secured assets:

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

Business Angels are used as seed capital.

Crowdfunding based on shares: CROWDEQUITY

their contribution is donation and not investment

Traditional bank loans and credits: short-term

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

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

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

Loans with a preset limit

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

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

smaller banks are more flexible regarding payments terms

sectors with more VC investment

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

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

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

Factoring and Leasing are asset-based finance

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

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

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

Traditional bank loans and credits: long-term

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

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

VC investors are interested in any potential profitable business opportunity

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

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

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

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

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

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

a transaction with assets as a primary source of repayment

Asset Based Finance (Low risk/return)

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

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

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

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

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

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