| Business Finance Source Definitions |
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Seed capital: capital required to fund a business project before the product or service is marketed. Seed capital is often pivotal in high-tech projects to allow businesspersons to conduct surveys as well as research and development on prototypes that will become companies’ core business. Venture (or risk) capital: equity invested temporarily in the form of shares of a company by a specialised firm in the hope of a return on investment (ROI) that is both large and speedy, on a par with the level of risk taken. Venture capital firms invest both in start-ups and growing businesses. Business angels (informal venture capital): private individuals who invest part of their estate in start-ups in the form of venture capital and also contribute their personal managerial expertise. Business Angels Networks (BANs): standing regional platforms that promote the matching of business angels with potential investees. Early stage (or start-up) finance: equity invested in businesses that are past research and development but need additional funding to market their products and services. Mezzanine: combination of equity and loans. Applicable interest rates are often comparatively high. Financial package: a combination of different funding sources. Corporate venturing:: venture capital invested by existing firms for the purpose of funding innoative businesses set up by their own staff or active in industries considered of strategic importance. Grants: subsidies paid—without an obligation to refund—by public authorities to companies investing in a region for the purpose of facilitating their establishment or expansion. Factoring: a technique whereby SMEs sell invoices to specialised firms. Leasing: hire-purchase of capital goods. Loans and debt: the main sources of funding for SMEs. |
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Total Registred - 187 |
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Total Registred - 541 |
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