The idea to establish a startup comes naturally for some, but funding almost always seems farfetched. Well, Paul Sanders, an accomplished investment banker, entrepreneur, and philanthropist have some incredible suggestions for emerging startups seeking capital financing. He operates the successful independent investment advisory and commodity trading consulting firm, James River Capital, which he acquired and rebranded in 1995. He assumes leadership as CEO. Mr. Sanders emphasizes the need to explore both creative and conventional sources for capital funding.
What About Venture Capital Investments?
There’s a stigma out there that some business aspirants do not have the dynamism, charisma, and insight to present a compelling pitch. Paul Sanders encourage entrepreneurs to take advantage of any venture capital opportunities to give their business a boost. Venture capitalists have an eye for data, projections, and a coherent business plan that provides achievable statistics, so a startup must produce a well-thought-out proposal.
Need A Loan? Get Local Funding or Borrow Against the Business
Two more options James River Capital CEO finds convenient and effective are local funding and business loans. Startups that have established credit history can qualify for an SMB (small business) loan easily. The market has several loan options for businesses looking to get emergency funding. The SBA (Small Business Administration) also provide solutions for qualifying companies. What is most disagreeable is the lengthy processing time, although it beats getting a standard bank loan. Entrepreneurs should also consider networking to allocate local grants and organize a fundraiser. The local board of trades can help community businesses connect with the right networks for fundraising efforts.
Trade Equity for Capital
Have company assets to trade for financial gain? It’s the oldest method to raise capital investments for a business. What entrepreneurs should keep in mind when going this route is that they’re giving up control and ownership of their business shares to some degree. On a positive note, it allows them to expand their network as the alliance also align the business with potential investors.
Angel Investments: Building the Business
These investors are constantly in the market seeking out the next business to engage for a partnership. The businesses they fund are usually promising young startups or struggling companies that need short-term bailout money. Getting in the race for angel investment funding is a matter of finding the right opportunity. A good place to start is the ACA (Angel Capital Association).
Why Consider Bootstrapping?
Budding entrepreneurs can get the business on the ground right away if the family throws in support or they have enough savings to make a capital investment. How these entrepreneurs source capital funding is entirely their decision; whether they’re using credit cards, contributions from the family trust or personal savings. It is an ideal solution for businesses that need small investments.
Create Crowdfunding Campaigns
How about launching a build the business campaign to raise capital? Today, there’s an influx of crowdfunding platforms that provide services, tools, and a community to help startups realize their business dreams. The campaign creator sets his or her tiers and goals for supporters to pledge.
James River Capital has been in the financial market for over three decades. Former KPC (Kidder, Peabody, and Company) senior partners Kevin Brandt and Paul Sanders bought the investment advisory in 1995. Formerly KP Futures Management Corp, the firm was the alternative investments branch of KPC. It is a CFTC and SEC-registered advisory. The manager focuses on a diverse class of assets, including managed future funds, asset-backed securities, corporate credit, alternative investments, distressed debt, and more.