How to Raise Capital Without Giving Up Equity

What’s up, everyone? Today, we’re talking about how to raise capital without giving up equity!

Click here to see my youtube video!

Ideally, your first option would be self-funding because you can start profiting immediately and using that money. But what if you don’t have that kind of cash?

The fastest way to get that cash would be from angel investors or a VC firm. This is an easy way to get instant capital, but it has some cons…

Remember, you’re forfeiting 20% of your equity to start with! Yikes!

Similarly, if you get a venture loan (short term), usually the loaner will ask for a quarter of the equity.

If your business is starving for capital, a venture loan can be helpful. Venture studios or incubators are also some options to consider.

Just keep in mind…

“There’s a lot of options, but they almost all result in you giving away a piece of your company.”

Lincoln Archibald

Best Option: Starting a Fund

Why a fund?

  1. raise money in a separate business (your fund)
  2. invest that capital to help your original business

“Running a fund is running a business. If you can invest capital into goods and services and provide a return for your investors, that’s a fund!”

Lincoln Archibald

The best part: you don’t have to give away any equity of your original company!

Choosing to start a fund is great because you are starting a separate business to raise a bunch of money, while keeping equity in your other business. Therefore, no equity is lost in your main business!

Like I said in my video…

“Starting a fund is not easy, but it’s a great way to go if you don’t want to give up equity.”

Recap

  • You have a business and want to raise money
  • You don’t want to give away equity
  • Start a fund
  • Invest your dollars
  • Get a return on profits and keep your equity

Check out my youtube video to see how my client used a fund to raise capital for his oil rig business!

That’s all for me! Click here if you want help starting your own fund!

See you soon,

Bridger Pennington

Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!

DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.


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