Posts Tagged "Mezzanine capital"

Understanding Different Types of Financing

Posted by on Sep 22, 2010 in Finance 101 | 0 comments

Understanding Different Types of Financing

Image via Wikipedia Often clients come to me indicating they want to raise money.  So I get to ask the next questions: “Equity?” “Debt?”  “Or some combination of these?” The response is too frequently a glassy-eyed: “You tell me.”  To compound  their initial frustration, my answer is usually, “It depends.” Everything has a price, including money.  At its most basic, that price is normally interest or return on capital.  In the real world, however, the intangible conditions associated with outside funding can be as costly to the entrepreneur as any additional premiums charged to a high-risk loan.  Lender-imposed covenants on an investment...

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Raising Venture Capital

Posted by on May 25, 2010 in Entreprenuers | 2 comments

Raising Venture Capital

Use Other People’s Money?  It Depends… The Risk of Other People’s Money Often clients come to me indicating they want to raise money.  So I get to ask the next questions: “Equity?” “Debt?”  “Or some combination of these?” The response is too frequently a glassy-eyed: “You tell me.”  To compound  their initial frustration, my answer is usually, “It depends.” Everything has a price, including money.  At its most basic, that price is normally interest or return on capital.  In the real world, however, the intangible conditions associated with outside funding can be as costly to the entrepreneur as any additional premiums...

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