Raising Capital Might take More Than a Lucky Cat

“A bank is a place that will lend you money if you can prove that you don’t need it.” – Bob Hope via goodfinancetips.com

This week we are choosing topics to research that pertain to raising funds for entrepreneurial pursuits. We’ll be publishing an article in a few weeks about the topic we research, and I chose a pretty traditional form of funding to explore. My topic is “Loans & Lines of Credit (to include SBA guarantees)”.

So far, I’ve learned the Bob Hope comment about banks loaning money only to people who prove they don’t need it is entirely true. Most banks are pretty risk-averse. This explains the popularity of other non-traditional forms of funding for modern entrepreneurs; options like:

  • Angel Investors
  • Crowdfunding
  • & Business Incubators

For entrepreneurs who have collateral to offer and/or extremely great credit, traditional loans and lines of credit can still be a good option but are usually not the only option to pursue. As I conduct more research, I’ll post the whole article on my blog to share.

In the meantime, I’d like to share a couple of thought-provoking pieces about funding.

The first is a quick bit of advice posted on Entrepreneur.com from Amy Williams, CEO at Citizens of Humanity on choosing investors wisely: https://www.entrepreneur.com/video/310046

The second is an interesting article about the story you tell when pitching a start-up to investors. It’s an HBR piece called Startups That Seek to “Disrupt” Get More Funding Than Those That Seek to “Build” by Dana Kanze and Sheena S. Iyengar.

I hope this gives you some food for thought until my next post.

Author: strengthsfocusedintrapreneur

Experienced Human Resources, Engagement, and Leadership professional with a demonstrated history of working in the hospital & health care, and retail industries. Skilled in HR consulting, project management, HR IT systems administration, team leadership, conflict resolution, HR policies, training/facilitating, talent development & placement, and relationship building. I practice very progressive HR methods and utilize strengths based talent strategies. I am committed to the professional development of others and value life long learning.

2 thoughts on “Raising Capital Might take More Than a Lucky Cat”

  1. Hey Nancy,

    From the start I thought the introductory quote was excellent and thought provoking. I recently spoke on some ways that entrepreneurs raise the capital they need through the various ways you did. Looking into each form of investing, from each form of investor, and learning how that intertwines with a larger plan is something an entrepreneur must do to be knowledgeable about where to go with their business moving forward.

    The pieces of advice you directed me towards were insightful. Thank you for putting up those resources and the excellent post.

    Liked by 1 person

  2. Hi Nancy! I love the article from HBR that talks about how entrepreneurs described their endeavors as either disruptive or building. I find it interesting that the excitement of disruption gains more financial interest than building. I love the piece of advice that it may be important to consider the language one uses to define the business. I wonder if there are any other archetypes for entrepreneurs besides disruptors or builders? Great read. Thank you.
    JOY

    Liked by 1 person

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