Your Result:
VENTURE CAPITAL & ANGEL INVESTMENTS and GRANTS!
VENTURE CAPITAL & ANGEL INVESTMENTS
Your business is a potential candidate for Venture Capital / Angel Investments!
Venture Capital (VC) and Angel Investments fall in the category of equity investment. This means that the investor invests in exchange for shares of your company. While some VCs and Angels invest before your company has started generating revenue, most equity investors want to see at least some revenue or another form of traction, such as a pilot program, proof-of-concept, a community ready to buy your product, pre-sales, etc.
Angels are individuals who write checks from their own bank accounts, while venture capital investors are funds that have raised money from high net worth individuals, endowments, foundations, and other types of investors, and then invest that capital in companies.
A key consideration with VCs and Angels is their high growth expectations. Furthermore, VCs are looking for a very high return (typically at least 3x the money they invested); for that level of growth to be realized, they want to see your business grow exponentially. This means you should have a plan to grow fast,
You will need an exit plan for your business, whether that's a sale to another company or an Initial Public Offering (IPO). Once a VC invests, they will expect to be paid back (plus all returns) within the next 7-10 years (due to their fund structures); thus, there needs to be a "liquidity event" - either the sale of your company's shares on the public markets through an IPO, or another company buying your company, thus producing the cash to pay the investors.
Angel Investors may be more patient / flexible with their timing, but they expect to be paid back with a return as well.
GRANTS
Grants are commonly known as "free money." That's because you typically don't have to pay the money back, nor do the grant funders take shares of your company in exchange for the funding they provide.
Though grant programs are often competitive and typically do not provide feedback on your application, grants are available to a wide variety of businesses - from start-ups to established businesses, across industries, and both product-based. Grant programs tend to have a focus, such as:
A particular industry (such as Consumer Packaged Goods, B2B, Healthcare, etc.)
Business owner characteristics (such as women founders, Black founders, military-connected founders, founders with disabilities, etc.)
A particular location (such as a particular city, county, or state)
While you may not have to pay interest or give up shares of your company in exchange for the grant money, you may still have to "pay" in the form of your time - for example, the time you put into completing the application (let’s be real, some grant applications can be long and tedious!), or other accompanying terms you may have to agree to in order to receive the grant, such as:
Participating in an accompanying mentorship/training program
Reporting to the grant administrator on how you used the funds or the impact that receiving the grant had on your business
Overall, we think grants are a good financing option for you based on the current status of your business!
You’re almost there! Keep scrolling for your suggested next steps and find out how we can support you. We look forward to helping you meet your financing goals!
Your Next Steps
Access our Business Grants Database
Our team has assembled a curated list of business grant programs for women, which is constantly updated and summarizes some of the Terms & Conditions of grants programs so you have a better idea of each program’s expectations.
Click the link below and enter the password FundWomenFounders
Schedule a financing strategy call with our CEO, Christine
Now that you’ve completed your assessment, it’s a great time to schedule your business financing strategy call!
Our CEO, Christine Saffold, an experienced financial expert and small business advisor, will help you chart your next steps to securing financing for your business and meeting your growth goals.
