Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • February 2014
  • Background Note
  • HBS Case Collection

Raising Startup Capital

By: Jeffrey Bussgang
  • Format:Print
  • | Language:English
  • | Pages:27
ShareBar

Abstract

Entrepreneurs typically focus their full energies on business-building. But raising capital is a core part of building a valuable business. Developing expertise in raising capital is more than a necessary evil, it is a competitive weapon. Master it and you will be in a better position to make your company a massive success. But how do you finance a new venture? In this note, I will try to help answer this question by addressing the following topics:
• Types of funding. The two major types of startup capital are equity funding and debt funding although there are a few hybrid flavors as well.
• Sources of funding. These include venture capital firms, angel investors, crowd-funding, and accelerators/incubators.
• What investors look for. Each source has a different funding process and set of criteria which you need to understand before seeking funding from that source.
• The mechanics of equity funding. Seeking and securing funding involves setting amounts, agreeing to terms, and defining relationships.

Keywords

Fund Raising; Venture Capital; Venture Capital Term Sheet; Venture Creation/development; Venture Investing; Venture Philanthropy; Entrepreneurial Finance; Entrepreneurial Management; Entrepreneurs; Entrepreneurship; Jumpstart Our Business Startups (jobs) Act; Non-equity Financing; Convertible Notes; Convertible Debt; Debt Financing; Raising Capital; National Venture Capital Association; Venture Capital Firm Compensation; Crowdfunding; Crowd-funding; Startup; Start-up; Startup Management; Startups; Angel Investors; Angels; Accelerator; Venture Capital; Financing And Loans; Entrepreneurship; Business Startups; Financial Services Industry; United States

Citation

Bussgang, Jeffrey. "Raising Startup Capital." Harvard Business School Background Note 814-089, February 2014.
  • Educators
  • Purchase

About The Author

Jeffrey J. Bussgang

Entrepreneurial Management
→More Publications

More from the Author

    • November 2020 (Revised December 2020)
    • Faculty Research

    KhataBook

    By: Jeffrey J. Bussgang, Allison H. Mnookin and James Barnett
    • October 2020
    • Faculty Research

    COVID-19 Testing at Everlywell

    By: Jeffrey J. Bussgang and Olivia Hull
    • September 2020
    • Faculty Research

    The Black New Venture Competition

    By: Karen Mills, Jeffrey J. Bussgang, Martin Sinozich and Gabriella Elanbeck
More from the Author
  • KhataBook By: Jeffrey J. Bussgang, Allison H. Mnookin and James Barnett
  • COVID-19 Testing at Everlywell By: Jeffrey J. Bussgang and Olivia Hull
  • The Black New Venture Competition By: Karen Mills, Jeffrey J. Bussgang, Martin Sinozich and Gabriella Elanbeck
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Digital Accessibility
Copyright © President & Fellows of Harvard College