1. Financing your business
Sources of finance for
startups

2. Types of financing
Equity
Loan
Other sources

3. Equity Capital
Ownership
Willingness to take risk
No interest and repayment
Profit at exit – maybe…

4. Sources of Equity Capital
FFF
Seed Funds
Business Angels
– Individuals
– Networks
Venture Funds
Corporate Venture
Stock Markets

5. Loan Capital
Low willingness to take risk
Interest and repayment starts
immediately
No ownership

6. Sources of Loan Capitals
Banks
Real Estate Funding
Guarantee Schemes (through banks)
FFF

7. Other types
Grants and Awards
Funds
Leasing
Factoring
Negotiate payment terms

8. Financing & Life Cycle
R&D
Start up
Exploitation & Growth

9. Expand product
to national
markets BRIDGE
IPO or
sale
Completing product STAGE 1
development &
Preparing startup
STAGE 2 Capital to maintain
Full scale until pending
manufacturing & sales liquidity event
or initial expansion
SEED STARTUP
Product
development,
market research &
Concept building
management
infrastructure

10. R & D Financing
Seed Capital
– Often connected to universities
Public Sector
– If R&D is in the interest of society
Venture Capital
– If the potential is really promising
Corporate
– If it is of strategic interest

11. Start Up Financing
Business Angels
– Growth potential necessary
Venture Capital + Corporate
– High growth potential necessary
Public Sector
– Grants
Bank loans
– Typically small
– Through Guarantee Schemes

12. Exploitation & Growth
Financing
Banks
Business Angels
Venture Capital

13. Sources of finance
Equity Funds
Venture Funds
Vækstfonden – Guarantee Schemes and more
Business Angels
Seed Fund
Own money
Idea/Pre-seed Seed Startup Initial growth Expansion Re-structuring

14. R&D/Idea Startup Early growth Marketing Growth Maturity
Private
Equity
6
IPO
Late-stage VC’s
Revenue
Non-Bank
lending
Factoring
Early-stage VCs
PROFITS
Corp. Investors
4
INVESTMENT SIZE
Seed Capital
Founder
Founders
Grants
Business Angels
FFF
TIME - 2-