nontraditional

Creative Capital: Exploring Non-Traditional Start-up Funding

These are investors who are looking to give relatively small amounts (usually tens or hundreds of thousands) into businesses in exchange for equity and will often be tolerant of other forms of growth besides revenue. Venture Investors, or Venture Capitalists, usually come in the form of experienced investors looking to make large returns by investing in business ideas. Rather than a loan, which a recipient is legally bound to pay back, a VC accepts a certain amount of risk that they won’t make the money back, in hopes that some of their investments pay off huge. Although there is acceptance of risk, they are very selective of who they support. These expectations can make dealing with investors difficult and stressful. The emphasis will often be placed on growth, and pressure to expand your business asset will be coming from outside you and your team.

Startup valuations plummet while early-stage funding