Running a small company or need cash for your side hustle? Here's the ultimate capital raising guide [Thread]
Ways to raise capital:
1. Bootstrapping 2. Bank Debt 3. Working Capital/ Revolving Facilities 4. Angle Investors 5. Venture Capital 6. Private Equity 7. Crowdfunding 8. Government Agencies 9. Get a Business Partner 10. Funding competitions
1. Bootstrapping
The cheapest way of funding. Build the company with savings & family contributions. Privilege is a massive factor in getting off the ground.
Jeff Bezos' parents ploughed $245k into his e-commerce startup. Bill Gates' parents funded his founding company.
You're about to invest in the next biggest company to list on the stock exchange. You dream of a luxury island & a private jet - but you end up eating canned food instead.
Here's a guide to the insider secrets of IPOs [Thread]
Hold on, what is an IPO? Indian Police Officer?
No, it's an Initial Public Offering
It's when a private company issues stock to the public to raise capital. Facebook, Airbnb & Apple are IPO companies
It's not just US companies. I worked on IPOs in London, Johannesburg & Lagos
"The Roadshow/ Marketing"
The IPO process can be long!
The company hires a few investment banks to go out & sell the story to investors. Think of it as a series of dates. Do you tell her you leave towels on the floor on the first date? No.
Following a passion isn't always instantly financially rewarding. Crafting your dream career over time while having the fall-back of a 9-5 salary is a massive luxury.
Starting up any venture needs decent capital, a solid network, time to think and mental energy. It's hard to be creative when you're burdened by the stress of survival.
Big business starts as small business.
It might be an unassuming side hustle but it's another source of income AND it has the potential to develop into something much bigger.