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Healthy cash flow is one of the most important aspects of a healthy business and yet, often the most elusive as a business grows. Capital is also important at the start-up phase. Below are four major sources of capital that may be applied for using a convenient online application process.
| Type of Capital | Application |
| Angel Capital | Angel capital refers to sources of capital from an angel investor, which is typically a wealthy individual seeking to invest in a business start-up or growth venture in exchange for convertible debt or ownership equity. Angel investors may operate alone or as part of an angel network where resources and capital are pooled together. |
| Venture Capital | Venture capital refers to a type of private equity capital from institutional investors and high net worth individuals who pool resources through an investment firm to invest in immature, high-potential, growth ventures in return for shares in the business with the objective that the business ultimately be sold or go public. |
| Real Estate Capital | Real estate capital refers to someone who actively or passively chooses to invest in real estate. Active investors may repair or improve property to ultimately sell it for a profit, and passive investors may hire a firm to locate and manage investment property on their behalf. Cash flow, appreciation, depreciation, tax benefits and leverage are some of the returns sought for this type of capital investment. |
| Private Capital | Private capital refers to investors that may be individuals or a group who pool their private capital to invest in the start-up of a business. |
There are many great reasons for pursuing investment in your small business venture through raising outside capital including:
- Conserve your own cash by leveraging outside investment
- Leverage business credit by leveraging outside sources of capital
- Secure the necessary funds to support high growth
- Implement a fast growth and fast exit strategy
- Pursue outside investment that includes outside talent for supporting long term business objectives
- Match investors interests with your interests to fund growth
- Share risk and return on investment (ROI)
- Fund aggressive marketing strategies to build awareness and drive revenues
- Finance expansion into international market arenas
- Improve capacity for ensuring growth, profitability and long-term success
Select from any one of the links below to learn more about a range of small business financing tools, as well as sources of small business capital investment.
"Capital Sources for Small Business is an Edutorial published by the Knowledge Institute, recognized leaders in small business development and education by the US SBA and others. The Institute's entrepreneurial resource portals serve millions of individuals in all 50 United States and internationally by helping them to learn about and connect with resources to start, grow and succeed in business."
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