Raising funds in the form of seed capital for a project

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In order to grow or cope with an exceptional economic situation, companies may need to resort to fundraising. Whether it is a growth investment or business development, finding a source of financing requires implementing the most sustainable financial strategy for the company. In this article, discover everything you need to know about fundraising, the main existing ways to find investors, the specific nature of fundraising within start-ups, as well as the fundamental steps for fundraising.

What is meant by fundraising?
When a company is brazil phone data created, the various shareholders participate in the company's share capital. These contributions can be made in the form of assets or in the form of financial investment. Fundraising is therefore an operation whose objective is to integrate investors into this share capital. In return, the latter benefit from a capital gain on the resale of their shares.

Fundraising is essential for particularly innovative companies that wish to expand into other sectors of activity, or that have the ambition to conquer new markets. These capital contributions are then an excellent opportunity to invest in new equipment, new skills, or even new technologies.

Two main means of fundraising

When the participation of investors in the company's share capital is done with the aim of starting a project, in this case, we speak of seed capital . This financial participation is mainly done within the framework of the marketing of a new service or an innovative product. When it is a recent company, this form of fundraising represents a particularly important financing, insofar as it allows the company to integrate, in a concrete way, the market.

This fundraising in the form of seed capital then represents a financial investment at the start of the company. As a result, investors are initially represented by the founders of the company, their close entourage, or even individuals who wish to participate in the share capital of this young company.