Chapter 3

Funding

Deciding how to capitalize your company is one of the most critical decisions you can make in the early stage. Funding can be one of the biggest challenges for a start-up company as well as a growing company. Product companies typically require more start-up resources than companies in the service sector, although that can depend on the stage of development, customer requirements, and barriers to entry.

Deciding how to best fund your company can not only mean the difference between success and failure, but it can also significantly impact your personal situation if for any reason the company doesn’t succeed as you planned or in the timetable originally envisioned—both very real possibilities for many entrepreneurs.

At the core ...

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