Funding a business is a great way to learn the ins and outs of investing. Below are some ways entrepreneurs can fund a business. These tips are provided by Paul Saunders, founder of James River Capital.
Businessman Paul Saunders
Paul Saunders is the chairman, founder, and CEO of James River Capital and its affiliated companies. He has been in finance for many years and studied finance in college. He worked in several finance companies before acquiring KP Futures Management Corp in 1995. He renamed it James River Capital Corp.
James River Capital Corp
James River Capital Corp was founding in 1995 by Saunders and Kevin Brandt. The firm focuses on asset classes such as asset-backed securities, corporate credit, multi-strategy investing, global macroeconomic strategies, and more.
Ways Entrepreneurs Can Fund Their Business
Below are different ways entrepreneurs can fund their business.
Trading equity is when a company exchanges stock for money from investors. Some ownership of the business is then taken over by these investors.
Business and Local Loans
Business loans include bank loans and Small Business Administration loans. Local loans can be found through the Chamber of Commerce, which can connect entrepreneurs with each other who can help locate local investors.
Crowdfunding is when a group of people invest in a business with varying amounts of money. Kickstarter is a type of crowdfunding platform that is very popular.
Venture capitalists invest in companies to get a high return in a short amount of time. These returns are expected at 3 to 10 times higher within a few years.
Bootstrapping is when a person funds their business with their own money, borrows money from family and friends, or uses credit cards to fund their business venture.
Angel investors are individual people who invest in an idea they believe in.