Funding Sources

• Investor: The owner.
• Method: Self-financing
• Funding Amount: As much money as the owner can allocate starting from 0 €. In Greece at least for a simple start-up of a sole proprietorship you will need at least € 3,000 for the first year.
• Property / Capital: 100% by the investor - owner
• Details: It is the most common way to start your own business. He has the idea, he has his personal effort and he finances it with all the money he has. The owner can be more than one, as long as they all have money and work in the business commensurate with their shares.

• Investor: Any Internet user. Micro-investor.
• Method: Public funding.
• Funding Amount: € 1,000 - € 25,000 is a realistic approach. There are of course cases that have reached up to $ 20,000,000.
• Property / Capital: 100% by the owner. Micro-investors do not receive a share of ownership.
• Details: The public funding method flourished in the period 2010-2013 with the website kickstarter.com becoming one of the biggest trends on the Internet. Hundreds of similar web pages have been created since then. Some of them stand out for the specialization of the category of companies that seek funding, such as for example Indiegogo.com which specializes in NGOs. or fundmytravel.com for requested travel funding. A common feature of all funding efforts is the "purpose". In order to achieve the goal of any financing effort, the service or product must "offer" something either directly to its micro-investors or to the general good. Crowdfinding is an important step in the Hipster Business Model.

*Another method of financing from the public is the timeless method "Friends & Family", where investors finance mainly for emotional reasons, without giving them any "practical" reward.

• Investor: Mainly institutions.
• Method: Fixed-term reinforcement of business ideas, containing mainly guidance and training.
• Funding Amount: Practically 0 €, but essentially invaluable.
• Property / Capital: 100% by the owner or in some cases 8-10% by the institutions.
• Details: In essence, this method refers to programs that are usually the result of young entrepreneurship competitions and aim to strengthen the business through mentoring and free training. In many cases, housing services are provided, legal, accounting, technological equipment, etc. In Greece there are many incubator programs. Necessary supplies are the exclusive dedication of the team to the project and the presentation of the business plan to the public or the public.

• Investor: State or private companies.
• Method: Financing in the initial capital.
• Funding Amount: € 25,000 - € 350,000
• Property / Capital: 0% (if the investor is a government entity) - 15%.
• Details: The definition of Seed Capital includes all the above methods and refers mainly to the financing of the initial capital of a company. For the Greek data there are 2 types of institutions, the state ones (mainly the ΟΑΕΔ but in some cases the ΕΠΣΑ) and the private ones (mainly the Open Fund). The business can be in Idea, Alpha version, Beta version or "recently" Published stage. An essential resource of any business is the Business Plan where it should contain realistic goals and forecasts.

• Investor: Wealthy individuals.
• Method: Start-up capital financing.
• Funding Amount: 0 € - 250.000 €.
• Property / Capital: 5% - 50% by the investor.
• Details: Business angels are private investors where they exchange their money for a share of capital. Negotiations with them are very difficult because these investments are based mainly on the security they inspire and the high success rate. Usually, in addition to money, Angels provide other services for this and constant cooperation / communication with them is essential. In Greece, in 2016 several Angel investors appeared and their approach is usually done through technological events and presentations. There are many parameters that an owner must pay attention to before working with an Angel, because apparently the cooperation has many positives but there are scams on the Internet. Before starting any such collaboration, it is advisable to find a competent lawyer.

• Investor: Venture Capital Companies.
• Method: Financing new, ambitious and fast growing companies.
• Funding Amount: 350.000+ €
• Ownership / Capital: approximately 30% by VC.
• Details: The goal of every modern and "technological" startup company is their financing by VC and this is because loans are no longer given and opportunities from state subsidies are rare. The usual practice is to invest VCs in a later cycle, ie after the financing in the initial capital. The risk of investment failure is high, as such large capital is invested in small start-ups and profitable businesses. That is why in most cases, apart from the large percentage of property they claim, they are the ones who take the most important control in decision making. VC financing is not a monetary reward for the owner, nor will the profits he make be immediate and huge. It's not an idea sale. It is an aid program to accelerate his company to achieve the goals he has set in the business plan. The duration of the investment usually ranges between 3 - 7 years. Finally, some statistics: There are hundreds of Venture Capital companies worldwide, in the USA. for 2014 and 2015 were allocated from about $ 60 million, about 4-7 times the candidate will have to contact a VC until someone notices him, 1 in 200 proposals are accepted and 3 in 4 investments achieve their goal.

• Investor: Greek Institution that manages European funds.
• Method: Corporate Pact for the Development Framework.
• Funding Amount: € 30,000 - € 500,000.
• Property / Capital: 100% by the owner.
• Details: The ΕΣΠΑ programs in the decade of 2000-2010 seemed to be the best way of financing the development of medium and large enterprises. Major state and private projects have been implemented to date. The person concerned should work with a Business Consultant to explain the application, organize the dossier and then monitor the progress of the process. In any case, the interested party should propose the total costs that will lead his business to growth. Attention, this budget should exist from the owner, to pay it all himself and then to return to him a part of this money.

For further information regarding the funding of your business, feel free to contact us.