Fundraising
The practice of securing funding from investors to support the growth and development of a startup.
Also Known As
- Angel Investment
- Raising Investment Capital
- Seed Funding
- Venture Capital
Related
Addresses / Mitigates
- Funding Risk: Provides necessary financial resources to support the startup’s operations and growth.
- Market Risk: Allows the startup to invest in market research and customer acquisition.
- Feature Risk: Enables the startup to fund product development and innovation.
Attendant Risks
- Agency Risk: Involves giving up a portion of ownership and control to investors.
- Funding Risk: Creates a dependency on investors and their continued support and introduces pressure to meet investor expectations and deliver returns.
Description
"Raising investment capital involves securing funding from investors to support the growth and development of a startup. This process typically includes creating a compelling pitch, meeting with potential investors, and negotiating terms." - Raising Investment Capital, Wikipedia
Fundraising involves engaging with venture capitalists, angel investors, internal budget-holders or other funding sources to secure the necessary financial resources.
See: