Introduction

When it comes to funding an innovative idea, both entrepreneurs and investors look at (and search for) different elements. This module guides you through the entrepreneurial journey showing different sources of finance available per each step of the journey, taking the perspective of both the demand and the supply of funds. You will see that Equity and Debt are the main sources of funds. University grants and Informal investors can help you get the proof of principle. Family, friends, and relatives are the first place to look for money when you want to prove your concept. Venture capitalists help you develop further, in exchange for an ownership share of the business. Banks require a solid business plan and plenty of collaterals. Each source of funds has specific requirements you need to meet. At the end of this module, you will appreciate that mixing sources of funds belonging to different steps of the journey does not add to the feasibility of your idea.