Tools for Business

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Getting Ready to Raise Capital

To borrow money from a traditional bank, you need a good credit rating, a business plan or financial statement, and the willingness to personally guarantee the debt (i.e. use your personal assets to pay the debt if needed).

To raise capital (either loans or equity) from other sources (crowdfunding, angel investors, etc.), you need a Story, a Team, and Supporters.

Paul Niederer of Crowdfundbeat.com has summarized this:

These have to work together to show: Below, is Niederer's 50-point scorecard, which he calls the Fundability Evaluation Tool. If your audience doesn't give you a score of 35 or more... he says you're not ready to raise capital.