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An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. The angel then introduces the entrepreneur to his or her wealthy friends and business connections who, based on the good reputation of the referring angel, also invest. All live happily ever after.
The real truth is, since the "Internet bubble" burst in 2001, initialpublicofferings have not resumed the vitality levels of the late 1980s, let alone the boom years of the '90s. Crowdfunding is an efficient way for entrepreneurs to raise seedcapital," the editors wrote.
Many entrepreneurs end up taking their company in a different direction after some time spent testing your initial business model. With seed funding, you hope to grow your business and, at the very least, gain proof of concept. Hopefully this lays out the different types of funding you can get and when.
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