Finance a New Business

Capitalizing a company is probably the toughest thing an entrepreneur has to do, especially when you just have an idea and you don't have a lot of money to support it. Probably the first thing you want to go to is friends, fools and family - sometimes the most difficult money to get. It's really tough you know it's easy to go to Aunt Sally and ask her to write a check for you if she can afford to do it, it's really hard to go to Aunt Sally and tell her you lost all her money on your great idea; it's not a great way to build family relationships.

There are several sources of money available to early-stage companies: there are friends, fools and family as I just discussed. There are also angel investor groups - there's a lot of professional and angel investor groups have been established around the country where groups of high-net-worth individuals come together to invest in companies. There's also institutional seed stage investors which are early-stage venture capital funds that look to invest in seed stage companies, and they usually invest somewhere between two hundred and fifty thousand to a million dollars.