Reference no: EM133574200

Please match the source of the funding to the best example or description. Personal savings Angel Investor Friends, family, and "other fools" Crowdfunding Bootstrapping Venture Capitalists SBIR, STTR, SBA Bank loans

A. Governments will often provide funding for new ventures to encourage economic development.

B. Max your credit card, take a mortgage, and use you own bank account.

C. Instead of equity, they take debt which has to be paid off before the equity investors can take any money out of the venture. Often the entrepreneurs take on large personal risk to provide a guarantee.

D. More experienced, older, and wealthier entrepreneurs may make early stage investments.

E. Kickstarter, Indiegogo, and others

F. Groups of investors raise pools of funds to make investments and take an equity position in the new venture. They assume that many will fail, but that a few will be big winners.

G. A difficult group to manage. If they do not invest and you are successful, they will be angry. If they do invest and you fail, they will be angry.

H. ILinc used this. Computer and IT ventures often sell "vaporware" or other products for later delivery. The sales fund the venture.