I see this confusion a lot: People use the terms “venture capital,” “venture capitalist,” and “VC” to apply to any outsider investing in a startup. However, it’s really useful to draw some distinctions in this area, between three important classifications: venture capital, angel investors, and anybody else.
When new technology sprouts up, there is often a battle between two entities: old guard vs. new. Normally, the old guard will hold on to its original ways as long as possible until it has no choice but to adapt.
Most entrepreneurs want to cast a wide net when applying for loans. Before you make your final decision about which loan option is the best for you, here are some things to keep in mind about unsecured loans.
Don’t charge the hill until you are “ready.” This probably seems obvious to military types, but I see entrepreneurs violating this rule all the time. They approach key potential investors way too early.
Sometimes it is better to use an investing partner than a bank to get the capital needed for a business. While many people think that franchising requires bank loans, there are other alternatives for financing your franchise, including investors.
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