STARTUP FINANCING METHODES

Zahra Zaeri Amirani – 98125075 Amir Hossein Tila - 99115069

 •STARTUP FINANCING METHODES •

01 Bootstrapping 05 Crowdfunding

03 Business angels 04 Business incubators

05 Venture capital 06 Government grants

and subsidies

07 Bank loans

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 •BOOTSTRAPPING•

Personal investment Friends and family

When starting a business, your

first investor should
be yourself—either with your
own cash or with collateral on
your assets. This proves to
This is money loaned by a
investors and bankers that you
spouse, parents, family or
have a long-term commitment to
friends. Investors and bankers
your project and that you are
considers this as "patient
ready to take risks
capital", which is money that will
be repaid later as your business
• WARNING • profits increase.
Don't take it all. Keep an
emergency fund in case a
client doesn't pay on time, a
pipe bursts and destroys
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equipment, etc.
 •CROWDFUNDING•
Traditional crowdfunding Equity crowdfunding

Donation-based:
Donation-based crowdfunding is the When a business raises funds in
collective effort of individuals to help return for equity/shares in that
charitable causes business.
Reward-based:
When people invest in a project they
are passionate about, in return for
some reward (usually non-monetary)
such as getting a product, free
tickets/gifts, or recognition in some
way.
•Example of Equity•
•Example of Reward-based • property partner
Fundable crowdcube
Kickstarter
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 •Example of Equity crowdfunding in Iran•

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 •Example of Equity crowdfunding in Iran•

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 •Business angels•
These accredited investors back
companies in exchange for
convertible bonds or ownership
equity.
They often band together in angel
networks, pooling resources and
providing advice to the companies
they invest in.
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Angels tend to keep a low
profile. To meet them, you have
to contact specialized
associations or search websites
on angels. The National Angel
Capital Organization (NACO) is
an umbrella organization that
helps build capacity for
Canadian angel investors. You
can check out their member’s
directory for ideas about who to
contact in your region.
 •Business incubators•

Many also offer investment capital &

Incubators provide support staff to help with finance,
marketing, sales, & strategy, plus
established networks of experts to
help guide major decisions.

Office space Mailboxes

Because they have a vested interest
in your success, Incubator staff want
to be involved in decisions. And
there's always the possibility they'll
be at odds with your vision

Phones Conference room

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 •Example of Business incubators in Iran•

‫ستاک شریف‬

‫تریگ آپ‬

‫نوین تک‬

‫دیموند‬

‫فارابی‬

‫فینووا‬
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 •Venture capital•

VCs invest initial or growth

capital for equity.

• WARNING •
VCs may want to add a member
of their own team to your upper
management or approve any
Many VC firms also have major business decisions you
specialists on staff to provide make.
expert guidance & ensure their
investment pays off, which can
be helpful if you don't have
much experience running a
business and want help.

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 •Example of Venture Capital•

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 •Example of Venture Capital in Iran•

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 •Example of Venture Capital in Iran•

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 •Example of Venture Capital in Iran•

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 •Government grants and subsidies•

Grants are sums that usually do

not have to be repaid but are to
be used for defined purposes.
Subsidies, on the other hand,
refer to direct contributions, tax
breaks and other special
assistance that governments
provide businesses to offset
operating costs over a lengthy
time period

Example in Iran:
‫معاونت علمی فناوری ریاست جمهوری‬

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 •Bank loans•

Come to the bank prepared

with a thorough
Bank loans are the most understanding of your
commonly used source of company's risks, a working
business model, & a high
funding for small and medium-
credit score.
sized businesses. Consider the
fact that all banks offer different
advantages, whether it's Banks are lenders, not
personalized service or investors. Your business
customized repayment. It's a needs to be established
good idea to shop around and enough to show a track
find the bank that meets your record of steady revenue, so
they can be confident in your
specific needs.
ability to make payments.
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 •startup financing cycle•

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 thanks for your attention

Any
Questions?

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