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What is the fastest way to receive startup capital?

My company is a sole proprietorship looking for expansion. We want to purchase an IPO with startup capital. My personal credit is good, yet I can't seem to receive am affirming decision on startup capital. What is the fastest way to receive startup capital?

Career / Compensation, Small Business, Small Business Financing, Starting Out
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January 2019

Hello, this is a great question and I'm happy to share my insights. I have experience starting businesses and helping start-ups raise capital. First off, investors do not want to provide funding to a sole proprietorship because it offers no tax advantages and the legal structure is not optimal for acquisition. Typically, investors look for a Delaware C-Corp legal structure because of the tax shelter and legal protections. Additionally, it's great you have good personal credit because that does factor into capital raising and some investors respect that you are transparent with your own personal finances. The fastest way to receive startup capital is by setting yourself up in the proper legal structure and developing a product or service that is scalable. Ask yourself, how will you generate revenue, through subscriptions, one-time payments or other? This is the most important question you will need to answer for investors. Furthermore, raising a seed round first would be your best bet. Typically a seed round is below $500,000 and this will give you a runway to launch your minimum viable product. I recommend researching Steve Blank and his business model canvas, if you can master his approach to launching a start-up then you will have a fighting chance at raising capital. Also, remember the journey will not be easy and the capital raising phase is competitive. Consider crowdfunding as well with the new JOBS act this is to your advantage. Best of luck! 

January 2019
January 2019