Introduction: Many college entrepreneurs say that the first bottleneck of starting a business is often insufficient funds, and the channels to solve the financial problem are very limited, especially in the whole economic downturn. The risk of venture financing is a problem that college students have to consider carefully in the early stage of starting a business. So what are the main ways for college students to start their own businesses?
(a) family financing
Family financing is to raise money from family members or relatives and friends. Advantages: This method has the advantages of fast financing, low risk and low cost. Disadvantages: Borrowing money from relatives and friends to start a business will bring financial risks and even financial losses to relatives and friends. If the business fails, it will affect the feelings of both parties.
(2) loans from financial institutions and small loans from banks
Bank loans are called risk financing? Reservoir? Advantages: The bank has strong financial resources. Disadvantages: red tape, a lot to go through? Threshold? No mistake can be made in any link.
(iii) Angel Fund
Angel investment is a one-off upfront investment made by free investors or informal venture capital institutions for original projects or small start-ups in the state of conception. Advantages: Private capital investment operation procedures are relatively simple, financing speed is fast, and the threshold is low. Disadvantages: Many private investors always want to hold shares when investing, and it is easy to have some contradictions with entrepreneurs.
(4) Joint stock partnership.
Partnership can not only effectively raise funds, but also give full play to the role of talents, which is conducive to the utilization and integration of various resources. However, partnership investment should pay special attention to the following issues: first, it is necessary to clarify the investment share; The second is to strengthen information communication; The third is to establish articles of association in advance.
(5) Policy funds
Venture funds provided by the government are usually called entrepreneurs? Free imperial grain? . Advantages: Use government funds, and don't worry about investors' credit problems; Government investment is generally free, which reduces or eliminates the financing cost. Disadvantages: there are strict procedural requirements for applying for venture capital funds; The government's annual investment is limited, and financiers need to face competition from other financiers.
(vi) University Risk Fund
Colleges and universities play an encouraging and promoting role in college students' entrepreneurship, and most colleges and universities have set up relevant entrepreneurship funds to encourage students to try to start businesses. Advantages: Compared with college students, raising funds in this way is more advantageous. Disadvantages: the scale of funds is not large, the support is limited, and the target audience is not wide; The competition is fierce.
(7) Venture capital
Venture capital is a brand-new investment method combining financing and investment. It means that entrepreneurs get a sum of money by selling some shares to venture capitalists, which is used to develop enterprises and open up markets. When the enterprise develops to a certain scale, venture capitalists sell their own shares to get profits, and then make the next round of investment. Many entrepreneurs use venture capital to get their enterprises through infancy. Advantages: It is conducive to high-tech financing-related projects, innovative business model operation, luxurious team background, good cash flow and rapid development. Disadvantages: limitations of financing projects.
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