Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

Your financial projections will be important for your fundraise.

Banks will want to see your projections when you apply for a loan. 

And investors will want to see them as well when you raise equity funding. 

There are two basic forms of capital: debt and equity.

Debt is in the form of a loan with specific terms, including interest rate and payback plans. 

Debt has some advantages:
– You maintain ownership over your business.
– Interest is tax-deductible.
– Debt can keep management focused on the core business, in particular cash flow and profits.

Equity has advantages:
– You don’t have to pay it back immediately, only when you sell the business or go public.

Your financial projections will help you decide how much funding you should take from debt and equity.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.