John Dimmer was our guest speaker on May 3rd, 2012. He is a serial entrepreneur and knows much about finances. During our lecture, he gave us plenty of financial advices. I like the overall lecture because it was very relevant and important. Even though money is not the primary goal for an entrepreneur, it is probably second after the actual idea and the joy of actually creating something new and novel. So, how do you get money to start up your company?
1. Friends and family, personal credit&debit cards.
Ones you have come up with an idea, you are likely to need money to start producing something before you get revenue back out of it. First resource available (hopefuly) is your own money that you might have, or your family or friends. John did not recomend to start your company on your credit cards. Bad idea, but still if this is the only option, go for it. Use it.
2. Angels investors. The best option for start-ups. They look to invest relatively small amounts of money in comparison to VC's. So, it might me the best option to start with.
3. Venture Capitalists. Big money. Beware, they mught just look for information, not to invest into your "really smart idea". Only 1 or 2 percent of startups get VC money. So, do not really count on them.
4. IPO. No comments. Dont dream about it.
There are two types of investment: loan and stock. Also it can be a little bit of both.
Personaly, I would prefer to start with Angel invesment, because my idea does not require that much at start.
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