All Posts in "FUNDING TYPES"

What Is a Gold Loan? Meaning & How It Works, Gold Loan Interest Rate

One of the world’s biggest users of gold is India. According to the World Gold Council (WGC), India’s annual demand for gold surged by 804% between 1987 and 2016. It can be used as collateral for gold loans, which are frequently used to get funds for both long- and short-term purposes. The gold loan is actually one of the simplest and quickest ways to get money when you need it.

However, if you are looking to loan against gold Adelaide, then gold loan may be your best financial option, even if you have lots of unused gold in your safe but a low credit score. With the growing popularity of gold loans every year, it is necessary to know not only what a gold loan is but also how it operates, gold loan interest rates, and other associated data.

Gold Loan

A gold loan is a secured loan taken by borrowers seeking to meet their immediate or long-term cash demands against gold. Lenders typically approve you for a loan in an amount that corresponds to a particular portion of the gold’s value. You can receive your gold items back after paying them back in monthly installments. In this case, the borrower guarantees their gold jewelry as security. According to the Reserve Bank of India, the amount of the loan allowed may not exceed 90% of the gold’s current market value. The gold that can be pledged ranges in carat weight from 22 to 24.

Thus, it’s a terrific option … READ MORE ...

Ronnie Jackson by — July 11, 2024 in Personal Loan
Seed Funding For Startups

How to raise seed funding for startups? This article will explain how to pitch to investors who will give you seed capital. You can seek out private investors, angel investors, or corporate investors, depending on the nature of your business. Once you’ve narrowed down the options, it’s time to prepare your pitch deck and start attracting investors. Ideally, you should have a clear understanding of your solution and growth potential. The more information you can provide to investors, the better your chances of raising money.

Angel investors

Angel investors provide seed funding for startups, usually in the form of equity. Typically, early-stage companies don’t qualify for debt investments, so investors only offer equity. In some cases, angels use convertible debt, such as a SAFE (Simple Agreement for Future Equity) or a convertible note. In general, however, angel investors only provide cash for equity shares. A founder must consider the company’s valuation before seeking a loan.

While friends and family are often a good place to start, a business pitch deck that includes a detailed financial projection is essential for attracting an angel investor. Investors look for a business that is going to grow, and a business pitch deck demonstrates the trajectory of growth. Having key personnel on the team will also help. Before looking for seed funding, an entrepreneur should make sure that they can demonstrate the product’s benefits and potential revenue.

Corporate investors

Seed funding is usually small and varies in size. The amount raised ranges from several hundred … READ MORE ...

Ronnie Jackson by — August 28, 2022 in Seed Funding
Seed Funding Examples

Before we talk about the different types of seed funding, we should first define what this type of investment is. As the name suggests, it is startup financing provided in exchange for equity. Seed funding is usually used to pay for essential startup expenses such as research and development. These funds are not meant to replace venture capital funding. However, these funds can be very helpful for businesses in the early stages. Listed below are some common seed funding examples. Read on to learn more about each one.

Seed funding is a form of financing/startup funding for a business

To raise seed funding for a business, you must first raise the profile of the business. This can be done by attending conferences, networking with industry insiders, and being active on social media. The next step is to develop a strong business plan.

This should include realistic projections and a SWOT analysis. A good pitch deck should explain how the business solution or product will grow in the future and how the funding will set the stage for future growth.

It is provided in exchange for equity

Seed funding comes from various sources, including angel investors, venture capital firms, and incubators. The investors usually want to obtain a portion of the company in exchange for equity. The money provided by seed investors can keep a company afloat for several months or even a year, depending on the stage of development and expenses. The funds are used to complete milestones such as … READ MORE ...

Ronnie Jackson by — August 19, 2022 in Seed Funding
Seed Funding Investors

When seeking seed funding, entrepreneurs must convince investors that their business idea has a viable future. They should include a brief demonstration of their product, as well as a detailed financial forecast. Although they should not focus on the short term, entrepreneurs should explain how the seed funding will help their business grow in the future. A brief financial projection of the first year will likely suffice, but the real focus should be on future growth. Entrepreneurs should avoid mentioning the short term when requesting seed funding.

Angel investors

There are two primary types of funding: debt and equity. Debt financing is used for short-term needs, while equity is used for long-term needs. Debt financing requires repayment of the principal amount, while equity can be paid out at any time. Angel investors are often interested in a more hands-on role in a company’s operations, and they may want equity in the company. Depending on the terms of the deal, angel investors can require as little as 10% equity in the company.

VC firms

While many entrepreneurs come from corporations or universities, venture capitalists are not content with that model. Although corporations and universities provide the bulk of basic research funding, entrepreneurs understand that there are more risks involved, such as betting on unproven technology in a market segment where there is a high failure rate. Furthermore, the pay structure of most corporate entities limits their upside. The upside potential of VC firms is unlimited, since there are no pay caps.… READ MORE ...

Ronnie Jackson by — August 11, 2022 in Seed Funding
Important Details of a Venture Capital Fund Structure

If you are looking to invest in a venture capital fund, you need to understand the structure of the venture fund you are considering. This article will go over the key elements of a Venture capital fund structure, including the Management company, Limited partnership agreement, and Share purchase. Ultimately, your investment decision will determine the type of fund structure that will work best for you. Listed below are some of the most important details to consider before investing in a fund.

Investing in a venture capital fund

If you are interested in investing in a venture capital fund, you need to know how it is structured. Many venture capital funds use the Limited Liability Corporation (LLC) structure, which allows for the greatest tax benefits and liability protection. Some venture capital funds use a tiered approach, which increases the percentage of carried interest as the fund meets benchmarks. There are also several other types of VC fund structures. You can choose one that suits your goals and risk profile best.

Management company

Venture capital firms often oversee more than one fund, each with its own investment strategy, portfolio companies, risk profile, and investor base. For example, Krakatoa Ventures, which has already raised Fund I, may consider forming Fund III after raising the second fund. For Fund III, Krakatoa Ventures will form a new entity that will act as a GP. Standard VC fund structures will incorporate a Delaware limited liability company to act as the GP.

Limited partnership agreement

There are … READ MORE ...

Ronnie Jackson by — June 28, 2022 in Venture Capital Fund