Finimpact

Frequently Asked Questions(FAQ)

What is the difference between venture capital and venture debt?

Venture debt is a loan, while venture capital is money gained through fundraising where investors agree to provide you with funds in exchange for receiving equity in your business as it grows.

How do startups use venture debt?

Startups use venture debt to fund various operations as well as to keep things afloat by extending the runway between fundraising rounds.

How do you attract venture capital funding?

Reach out to venture capital firms and network with investors and institutions that put money into new startups. Also, meeting goals for growth and keeping investors pleased is a definite way to attract more venture capital funding. 

About the Author

Choncé Maddox

Choncé Maddox

Certified Financial Education Instructor (CFEI)

Choncé Maddox is a Certified Financial Education Instructor (CFEI) and personal finance freelance writer.

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