Venture Financing


Raising Funds for a Startup


Debt vs. Equity



Dealing with Banks

How to obtain a commercial loan for your venture


Venture Financing Gestation Stage Inception Stage Prototype Roll-Out Stage Growth Stage Expansion Stage Maturity Stage Founders: Bootstrapping Methods Business Angels Corporate Investing in External Ventures Venture Acquisitons IPO Venture Capital Firms Dealing with Banks Venture Management Venture Financing Revenue Model VC Investors Venture Funding Stages Venture Financing Chain, Venture Financing Curve: Sources of Funds for High-Growth Firms



Banking Basics

Banks are businesses too. They have stockholders to whom they must report and they are highly regulated by federal and state agencies.


Steps to Open a Business Bank Account

Forms of Loans




① Remember that banks only make a profit for their stockholders by making sound loans where they can collect up front fees (points) and also collect interest on the loan as well as recoup the loan principal.

② In order to have money to loan, they must maintain adequate reserves (regulated) and may not be able to lend more money until more deposits are made.




③ The SBA does not lend money. It only provides a guarantee to banks on risky loans. In the event that you default on an SBA guaranteed loan, the bank may have the SBA (federal government) make good on all or some of the principal.


Ideas for Funding Your Startup Business

Real Ways To Finance Your Startup




④ Banks may be prohibited or will not lend to certain industries based on their corporate policy, so be sure to ask the following questions before formally approaching a bank:


What the Bank Looks for in Making a Decision

4Cs of Lending




Do you lend on these kinds of projects?

Are you lending now?

Under what conditions are you making these loans?

What information do you need to consider my request? (Get their checklist)

What is the time frame usually associated to complete a loan of this type?




After you have this information, go and develop your business plan and associated documentation.


Executive Summary




Establish a Good Credit Rating

Have a Professional Business Plan

Relationship Banking

After the Loan: Maintain Good Communication with the Bank


How To Build a High-Growth Startup: 10 Rules

Technology Commercialization: Venture Pathways



Mark Twain wisdom jokes

A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain.

Mark Twain