Overview of Capital Resources -
Funding Sources (Slide 4 of 50)

• Each funding source should be considered before embarking on a fund raising campaign.
• Borrowings provide funds for limited terms with fixed paybacks. Borrowings often cost less than venture capital. Lenders frequently require company owners to guarantee repayment.
• Prepaid agreements and cash flow management provide funds but often in limited amounts.
• Joint ventures are often project oriented and can bring resources other than money to bear on completing the joint venture’s objectives. Ownership in a joint venture is often shared with the joint venture partner.
• Equity offerings such as public offerings, venture capital funding and private placements generate longer term capital for company expansion but dilute the founders ownership.

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