SVF Business Tips: Financing - YouTube

Today's video relates to the CSD SVF Series 2 application process.

Today we discuss the different sources of funding you can obtain to support your startup or business.

Depending on what your business or startup's needs are, there are different types of funding:

personal funds, loans from friends and family, crowdfunding,

different types of bank loans, and equity investment.

Before we move ahead, we inform you that this is not intended to be specific financial advice.

We recommend that you seek the services of a professional advisor or consultant to discuss

the different types of funding that might fit your business or startup.

It is important to assess your business needs in order to determine what types of funding are a good fit.

I will now discuss the different major types of funding.

The first type of funding is personal funds or retirement fund that I can use to invest in my own business idea.

That type of funding is great for new ideas that you want to test out to see if they gain traction.

This allows you to quickly develop your business plan or build a successful proof of concept

that you can use to seek other types of funding that you can receive in order to expand and grow.

This type of funding is less risky because you don't need to rely on others and can go at your own pace.

Another type of funding is reaching out out to your network of friends and family to obtain money to invest.

It's important with this type of funding to discuss with a financial advisor

or a lawyer and ensure that you set up agreed-upon expectations to protect yourself and others.

This way, if something goes wrong, you don't want to ruin your personal relationships.

A third type of funding is crowdfunding. It appeared a few years ago, and is a potential source of funding.

This is an opportunity to do several things at the same time:

to spread awareness of your product, to test which markets your product is good for and if demand exists,

and to actually receive funds.

This type of funding is good for business that can promise something in exchange for funds.

This promise could be for a product or service, a small percentage of equity in your company,

recognition or thanks, and other different promises.

Another type of funding is bank loans of different types, which could be a personal loan or line of credit,

home equity loans, or business loans. It's important to know that all require a fully developed business plan.

Another type of funding is equity investment. This could mean one big lump sum of funding,

or many small amounts from "angel investors."

Depending on your investor agreement, funds are given for a percentage of ownership in your company.

This type of funding does not always mean you need to pay back with interest.

With all these different types of funding, you now know what is possible for your business.

It's important to develop a good business plan for the these types of funding,

while not critical for the first two, it is a must for the last three.

It is important to sit down with your financial advisor or lawyer

to discuss what types of funding will be a good match for your business.

Good luck!