Funding Sources by Company StageD

eb

tE

qu

ity

Concept(Pre- revenue)

Expansion(Strong

Profitability)

Founders, Friends & Family ($)

Oth

er Crowd Source Funding

Grants (SBIR)

Early(Revenue /

Not profitable)

Growth(Revenue /

+/- profitable)

Unsecured Personal Credit

Angels / Angel Funds ($$)

Venture Capital ($$$)

Private Equity ($$$$)

Grants (DOE, DOD,etc)

Bank LendingAsset lending ( AR Factoring, PO Financing, etc)

SBA Backed Lending

Angels/ Seed Funds ($$)

Private Equity ($$$$)

Micro Loans

Strategic Partner ($-$$$$)

Regional Equity Capital Sources

Concept Stage Battleborn Fund Originate.com NCET2.org

Early StageReno AngelsBattleborn Fund Sierra Angels Sacramento Angels Vegas Valley AngelsVegas Tech Fund

Growth StageHamilton Lane (NCIC)Sun Mountain CapitalTechnology Ventures

Expansion / Buyout DCA Capital Berkshire Bridge CapitalBrennan Capital ManageNorthstar InvestorsTregaron Capital

Regional Lenders & Debt Sources

Seed Stage Nevada Microenterprise

Initiative Peer-2-Peer Lending

Prosper.comLendingClub.com

Early StageFew Commercial Banks

(w/ SBA Guarantee )RNDC – Rural Small BizLoan Brokers

Growth & Expansion Stage

NV Collateral Support Program

Commercial Banks Private Equity

DCA Capital Sun Mountain Debt

Fund

Alternative Financing Sources

Grants SBIR/ STTR (SBIR.gov)NCIAA NCET2.org

Crowdsource FundingKickstarter.com IdeGoGo.com TechStars.com

FundingLaunchPad.com

Asset Based Lending(Accounts Receivables /

Purchase Orders) ReceivablesExchange.co

mBibby Financial

Debt vs. EquityDEBT EQUITY

PR

OS

CO

NS

- Generally less expensive than equity

- Interest can accrue - Assets can be leveraged - Can be relatively

straightforward - Lenders have little voice in

how you run your business - Can be best of both worlds for

seed if convertible - Simpler legal docs - Interest payments eat into cash

flow, working and growth capital

- Accrued interest accrues- Terms act as a ‘deadline for success’ - Secured by company assets - Lender is in first position - Once a company is leveraged, it

becomes less attractive to equity investors

- Lenders provide little value add

- Relatively flexible timeline for success - Does not inhibit cash flow, working

capital, profitability, etc. - Aligned interest - Equity investors often add value to

the business (experience, relationships, etc)

- x% of something is better than 100% of nothing

- Generally more expensive than debt in the long run

- Hard to find - Bringing on equity investors is

like a marriage - Equity investors can be highly

involved in and opinionated on how you run your business – loss of autonomy

- Equity investors want an exit - Complicated legal docs

* source: lendio.com

•* source: lendio.com

* source: lendio.com