Funding Alternatives

As you can clearly see from the graphic [right] there are five basic ways that an Investor can inject funds into your firm's balance sheet.

A quick analysis shows that either money from  an Equity Fund or Venture Capital are clearly the worst because of time, risk, etc.

Equity + Debt and Debt Funding are viable alternatives but you can clearly see that the absolute best funding alternative/source is Straight Equity via a Super Angel.  It scores the highest score [22] because it is fast, viable, low risk and has the overall lowest cost to acquire.

Straight Equity has other advantages that are not reflected in this chart:

1.  No Payoff [i.e.  you don't pay back the funding.

2.  It can often include a Buy Back Offer, allowing you to pay off the Investor at a defined date - 3-5 years.

3.  Oftentimes it can also include a delay of up to two quarters before equity-based payments are made.