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Venture Capital funding
How Does Venture Capital Work?
Before we get into the finer points of VC funding, we first need to know what exactly venture capital is and how it works. When you have a business or an idea for a business you are inevitably going to need money to get it going. You could get the money from your
own personal savings, which unfortunately many people don’t have. You could get it by getting a second mortgage on your home, but this does nothing but creates more debt for you. You could bootstrap the business, which means you would start with a small investment to get the business going and then reinvest any profits back into the business. Another way to get funds would be to apply for a bank loan. This is a very lengthy process and ultimately the bank could call in your loan at any time.