Raising Money for a StartUp Company

Jason Nazar, founder of Doc­Stoc, digs up an old doc­u­ment on Rais­ing Money for a StartUp Company

Good infor­ma­tion within on the ‘fund­ing life­cy­cle’, boot­strap­ping, angel investors vs. ven­ture cap­i­tal, and val­u­a­tion meth­ods, amongst others.

Entre­pre­neurs face a great deal of chal­lenges in build­ing a suc­cess­ful ven­ture.  They have to iden­tify a good oppor­tu­nity, in a thriv­ing indus­try, orga­nize a com­pe­tent man­age­ment team, out pace the com­pe­ti­tion, and build a prod­uct and/or pro­vide a ser­vice that is worth­while to oth­ers.  How­ever, in spite of all these obsta­cles, rais­ing money to seed or grow a com­pany is often the largest chal­lenge of all.  The fol­low­ing paper will dis­cuss the busi­ness and legal process of rais­ing capital.