Compendium admissions 2023-25
Stages of startup financing
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- II. Expansion Financing
- Business model canvas
| Stages of startup financing I. Early-stage Financing a. Seed Financing Seed financing is provided for product development & research and to build a management team that primarily develops the business plan. b. Startup Financing After initial product development and research is through, startup financing is provided to companies to organize their business before the commercial launch of their products. c. First Stage Financing Is provided to those companies that have exhausted their initial capital and require funds to commence large-scale manufacturing and sales. 135 II. Expansion Financing a. Second Stage Financing This type of financing is available to provide working capital for the initial expansion of companies that are experiencing growth in accounts receivable and inventories and are on the path of profitability. b. Bridge Financing Bridge financing is provided to companies that plan to go public within six to twelvemonths. Bridge financing is repaid from underwriting proceeds. c. Acquisition Financing As the term denotes, this type of funding is provided to companies to acquire another company. This type of financing is also known as buyout financing. Business model canvas • Key partnerships Note the other businesses or services you’ll work with to run your business. Think about suppliers, manufacturers, subcontractors, and similar strategic partners. • Key activities List the ways your business will gain a competitive advantage. Highlight things like selling direct to consumers or using technology to tap into the sharing economy. • Key resources List any resource you’ll leverage to create value for your customer. Your most important assets could include staff, capital, or intellectual property. Don’t forget to leverage business resources that might be available to women, veterans, Native Americans, and HUBZone businesses. • Value proposition Make a clear and compelling statement about the unique value your company brings to the market. • Customer relationships Describe how customers will interact with your business. Is it automated or personal In-person or online Think through the customer experience from start to finish. • Customer segments Be specific when you name your target market. Your business won’t be for everybody, so it’s important to have a clear sense of who your business will serve. • Channels List the most important ways you’ll talk to your customers. Most businesses use a mix of channels and optimize them overtime Cost structure Will your company focus on reducing cost or maximizing value Define your strategy, then list the highest costs you’ll face pursuing it. 136 • Revenue streams Explain how your company will make money. Some examples are direct sales, memberships fees, and selling advertising space. If your company has multiple revenue streams, list them all. Download 4.08 Mb. Share with your friends:
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