After developing a technology or working on a project for several months (or years) using one's own Fortune, and money from Family & Friends, entrepreneurs typically look for outside funding. Common questions that arise include:
How long does it take?
Much depends upon how well organized and responsor the sponsor and his/her team are. An initial strategic assessment is without charge and quick; it can be completed in a matter of days. Due diligence may take as little as a few weeks to several months. Market materials are often prepared in conjunction with due diligence. Running the marketing campaign can take 2 to 12 weeks depending upon how much money is looking to be raised and whether a business idea is currently "hot" for investment. Deal structuring, negotiations and closing depend upon both the business sponsor as well as the investor, but typically take 1-3 months.
How much money can be raised for my business?
The amount of capital available for great ideas is virtually limitless, but its provision is limited at the earliest and most risky stage of a business. So, while a large facility of several million or tens of millions may be approved, investors will want to see the management team perform to release the next stage of funding.
Why can't I get a loan?
Debt funding is meant to be fairly riskless. Before an entrepreneur can borrow money against his/her business, it must (1) generate strong cash flows and (2) have assets that can be conveyed to the lender and sold in the event that the business becomes insolvent. Very few new technology ventures meet these criteria. Infrastructure projects often have valuable land, franchises or equipment that may be pledged as collateral for a loan, but at the start of a project they lack the cash flow to service interest payments. Hence, equity funding is the normal option for early stage ventures.
What does it cost?
There is no charge to review your business proposal. Due diligence and preparing a marketing campaign take serious work on our part, so involve a fixed charge based on the time required. Capital raising entails a fee based as a percent of money raised, where the larger the deal, the smaller the percent.