mpared to seed capital, fundraising in the form of development capital is requested when the company is in the growth phase, i.e. when it is already generating profits. Furthermore, raising development capital allows companies to go well beyond the launch phase, i.e. to take the next step, which is to expand its market, absorb a competing brand, or diversify its ranges of products and services.
In addition, it is important bosnia and herzegovina phone data to note that this type of financing method is specifically adapted to companies that already have a well-established brand image on the market, and whose break-even point has already been largely exceeded. Finally, fundraising in the form of development capital, as you see it in the MBA Finance training , is more appropriate for companies whose products and services already have a loyal customer base. We can then remember that this fundraising is offered to companies that already have solid financial stability on the market.
With the advent of the Internet and new technologies, start-ups have a margin of sustainable growth ahead of them. The founders of these small innovative companies therefore have every interest in appealing to fundraising specifically adapted to start-ups for several reasons.
First of all, investors who wish to participate in the capital of a start-up have the assurance of realizing capital gains on their shares at the time of their sale. On the other hand, on the entrepreneurs' side, fundraising does not require any financial guarantee with regard to investors. This then allows them to feed the capital of their start-up without having to plan for the repayment of the capital received.
Moreover, when creating a start-up , in addition to the financial contribution of investors, the latter also represent essential advantages for any founder of companies in the new technologies sector:
a network of professionals and experts in a targeted sector of activity;
support specifically dedicated to start-ups in the development of the company on the market;
advice on business management, management, marketing, advertising, etc.
All start-up creators must then proceed with meticulous strategies to find investors . The establishment of a solid business plan is essential. But also, the adequacy of your project in relation to its feasibility in a competitive market is also essential, because it allows you to convince future investors. Fundraising is a real investment in the start-up and development of start-ups, which is why this search for capital must be carried out in a professional and rigorous manner.
The importance of fundraising for a start-up
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