Let’s start with two quotes.
“Ideas are such funny things; they never work unless YOU do!”
“Ideas are capital that bear interest in the hands of those willing to work on them NOW!”
WHAT KIND OF LOANS CAN YOU GET FROM VENTURE CAPITALISTS?
It’s true that venture capitalists do indeed give loans as well as help to raise capital. These loans can help BWBs — Beginning Wealth Builders. There are a number of them. Here are the six most important:
- Seed
- Start-up
- Second-round
- Mezzanine
- Growth
- Bridging
Let’s take a look at each and see if any can help YOU in building your future wealth.
A “SEED” LOAN is made for an idea which sounds like it can really earn the BIG MONEY after it gets to the market. In the seed stage, YOU have little more than the idea. The loan YOU get is for developing the idea to the point where you are ready to buy some machinery, equipment, or buildings and start up your business activity.
A “START-UP” LOAN is just what it says — a loan to start up YOUR business. During the start up YOU might try out different ways of running the business to see which is best. But by the end of your start
up you will be ready to start selling items or ideas for profit.
A “SECOND-ROUND” LOAN is for money you might need at the end of the start-up. By this time the idea and method have been proven and YOU are ready to roll. The second-round loan puts YOU into business with all — or nearly all — the capital YOU believe you need.
“MEZZANINE” LOANS are for the point beyond SECOND-ROUNDS where YOU set your business sights way up and want to really grow fast. The mezzanine is higher than other seats in a theatre and the word implies raised sights in business. Your business is growing and more folks will be willing to help with an infusion of good cash at this point!
“GROWTH” LOANS are just that — money to grow on after YOU have proven your product, market, firm, etc. Venture capital firms delight in growth loans because these are made to firms which have proven themselves and there’s much less risk to everyone.
“BRIDGE” LOANS are for firms that are ready to go public, that is, sell their stock to the general public to raise more money. The loan “bridges” the time from today until the stock is offered to the public. This is usually at least 90 days, and may take as long as 6 months, but the firm DOES have money during this time from the bridging loan.
OF COURSE, VENTURE CAPITAL FIRMS MAKE MANY OTHER TYPES OF LOANS
But these six are, we think, the most important to BWBs.
How can YOU get in on some of these loans? By applying for one or more. Just today we heard of a BWB who applied at four different new venture firms for the capital he needed and ALL four offered to lend him the money!
Why?
K-40 : The IWS Complete Business Plan Kit
Perhaps the most thorough and complete business plan kit on the Internet today, the IWS Business Plan Kit shows how to prepare a business plan to raise money for any business. It is complete with several examples of successful business plans.
Well he had prepared an excellent business plan! So good that the four venture firms wanted to put their money into it! This shows YOU that THE MONEY IS OUT THERE — IF YOU LOOK RIGHT!
AND VENTURE CAPITAL HAS NOT DRIED UP, even though times may be a trifle tough. There still IS
money around! And YOU might be able to make some of this money YOURS for YOUR business — if you
seek it in the right way.
This is what we’re trying to tell YOU in every issue of the IW$ Newsletter: Money IS there. It doesn’t come too easily, but YOU have a very good chance of getting some of that money if YOU seek it in the right way!
Why not start today?
Then YOU may have that money tomorrow — or the next day. By that we mean in a relatively short time.
WORKING TO GET WHAT YOU WANT IS GOOD because it keeps YOU
- alert,
- up-to-date,
- and ready for doing more.
You will be amazed at how much YOU will learn in a short time and how useful this know-how can be to YOU!
NOTHING REPLACES STRONG ACTION FOR RESULTS!