Startup Funding by Outsourcing
Funding & Investors are a comprehensive guidebook for those who are seeking venture capital, private equity, or both. Authors Miguel Atkins and Keith B. Laggos detail the process of securing financing with a bank or other lender as well as navigating the intricate world of private equity for starters. With detailed research on everything from commercial real estate investment to start-up businesses, the authors show readers how to go about successfully raising funds. Investors usually have an incomplete knowledge of the business venture, they are attempting to finance. Funding & Investors help entrepreneurs and small-business owners by providing them with the proper funding tool in order to make an informed decision regarding their financing needs. By assisting investors with the important funding questions they should ask themselves and how to find reliable sources of capital they can utilize, the book provides vital information that can be vital in terms of business growth and profitability.
One of the most useful aspects of this comprehensive book is the section devoted to helping entrepreneurs and other business owners to determine the purpose of their company. The authors rightly point out that most investors ask entrepreneurs why they are trying to finance their business instead of simply asking, “What is it going to do for me?” The book then provides useful answers to such questions as, does the business need funding to grow? What are the pros and cons of raising startup capital? And most importantly, what are the specific funding sources available to investors?
Fundraising & Investors are an excellent reference for anyone looking for the best angel investors, venture capitalists, corporate investors, or private lenders to fund their ventures. Atkins and Laggos offer a checklist of characteristics required of such funding sources, as well as the key questions to ask them, as they evaluate possible funding partners. They also provide a list of common funding sources, which they define as being those that a venture may use to meet its short-term and long-term needs. Finally, funding from the Small Business Administration, state funds, federal grants, and ownership by foreigners are discussed. This book would be a valuable addition to any entrepreneurs’ library.
Investors and Entrepreneursing are an outstanding primer on how startup funding can happen and why it happens. Atkins and Laggos accurately describe the process through which private investors work with venture capitalists or angel investors to provide startup money. They also provide a very short historical perspective on the evolution of capital markets, noting that they have become increasingly dependent upon small investors over the last few decades. As they note in the preface to the book, this book should be considered as a complement to Understanding Business Equity. While the authors obviously have strong business experience, much of the information they provide is applicable to other forms of capital financing.
Atkins & Laggos recognize that some sources of startup funding are difficult to obtain. In addition, they briefly discuss the reasons why it may be difficult or even impossible to obtain outside financing for a business’s first five years. The authors recognize the importance of working with private funding as early as the planning stages to ensure that the business has the necessary financing it needs to grow. While they provide an overview of some potential funding sources, they do not spend enough time discussing ways in which private funding can be obtained from angel investors, venture capitalists, government programs, and other organizations. While there are many potential sources of funding, not all of them will be available or compatible with a given company’s business model.
Atkins & Laggos maintain their stance that highly creative entrepreneurs are usually the ones who will be most successful at achieving funding for a business through an angel investor or venture capitalist. They caution, however, that a qualified founder can sometimes receive a bad press from the media for reasons outside of their control. As they note in the preface to the third edition, “It is not too late to change the way you operate so that it takes advantage of opportunities when they do arise.” By planning carefully and using the advice in this guide, aspiring entrepreneurs can ensure that they are maximizing their share of potential funding and maximizing their share of potential success.