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AMBARESH BALIGA
Fundamentals, Stock ideas, Multibaggers
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CK NARAYAN
Negotiation calls F
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SUDARSHAN SUKHANI
Technical call, calls and information
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T GANAASEKAR
Commodity trading calls and market analysis
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MECKLAÏ FINANCIAL
Foreign Derivatives Calls and Information
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SHUBHAM AGARWAL
Options trading and market analysis
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SMITH INDIA MARKET
Model portfolios, investment ideas, guru and more
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Blacksmith merchant
Negotiating calls about regulations in a proprietary system
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Organized market data, property business recommendations, independent inventory research, and actionable investment insights
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Organized market data, property business recommendations, independent inventory research, and actionable investment insights
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THOMSON REUTERS STOCK MARKET REPORTS
Detailed report of movements and investment recommendation
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BOOST YOUR BUSINESS
Technical and freight calls
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INVESTMENT TRACKING
Set price, volume, and alerts
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STOCKAXIS LEADERS IN EMERGING MARKETS
15 to 20 high-growth stocks in a position to jump
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As a startup founder, knowing how to navigate other investment resources for your startup is a must-have skill. Not all investment resources build your business the same way, have the same costs, and offer the same point of freedom. The strategic application of the source of capital at the right point for the right set of expenses is imperative here.
Let’s start with the sources.
Priming
This is when you tap into your own savings, or those of friends and friends, to free up your business. This is the level at which you want maximum freedom to try new things and whether your business concept has the prospect of becoming a genuine business. .
This means that this is also the point where you are going to make a lot of mistakes. Your “investors” can’t (and shouldn’t!) from your own bank account, as well as from friends and family circle who implicitly accept it as true with you and your idea.
This is your investment when you are an early stage startup.
Angels
There is an explanation for why they are called “angel investors. “It is the investors who interfere before any other type of investor and, in general, their investment does not involve as many chains. The angel investor knows that there is a smart possibility that his business will not succeed and his fairness will turn to dust. However, they invest because they are in the perspective of their idea, and the threat will be to value it, in the returns that their investment will generate, if it is successful.
This is your investment when you are a start-up company.
Venture capitalists and institutional investors
Now you’re in the big leagues (almost!). Your startup is officially an expansion stage startup and has started generating revenue. Your concept has been proven and you probably have some star consumers who trust your product or service. The difference between angel investors and angel investors is a matter of timing: angel investors interfere in the early stages, while angel investors generally participate during the expansion phase investment cycles.
Venture capitalists and institutional investors also bring extensive experience. Most have their own incubators and offer warm presentations to their networks. This creates a win-win scenario, which helps drive business at a faster pace. Facilities that help them manage taxes, regulations, permits, and other administrative responsibilities that can consume a great deal of entrepreneurs’ time and attention.
However, venture capital funding comes with conditions. Yes, they take risks and yes, percentage of their capital, but they also expect exceptional returns. In addition, they expect all their investment to be spent on growth-generating activities, not on a day-to-day basis. of your business
This is your investment when it’s an expansion or a mature startup.
Debt
This is the debt coming in.
Debt comes with all the conditions. You have to return it. You have to pay interest (in the case of venture capital firms, this is usually maximum and comes with collateral that is changed to shares, further aggravating the capital charge), and in some cases, you can only use it for the purpose for which it was dispensed. Term loans, for example, can only be used for the purpose for which it was dispensed. If you get a term loan for a capital investment, you can’t use it to pay wages. There are, of course, term loan products that do not carry this warning.
The other option is the current equity loan. Unfortunately, to take advantage of a current capital line, you will need to meet eligibility criteria that would possibly exclude you. To take advantage of a current capital line with a bank, you will need to have a credit profile, a normal investment from an institutional investor, you want a guaranteed guarantee (either a flexible guarantee such as FD or a company guarantee such as a piece of land) and you will need to be profitable, with solid and developing incomes. For developing startups, this is usually not the case.
This is your moment when you are a developing or mature startup.
The hole
Unfortunately, this is the hole that hinders many startups. A growth-stage startup with a demonstrated idea, with growth-focused venture capital funding, does not generate profits. This does not mean that your source of income is low, far from it. It simply means that what you earn, you reinvest in the business.
However, it does not have a source for its current capital needs. The gap between paying for your inputs and generating a source of income can seriously hamper your cash flow and create awkward conditions with suppliers and employers, on the one hand, and the venture capitalist (who doesn’t). they don’t need their budget to be used for current capital) on the other.
In addition, it is vital to note that this hole exists regularly for startups in the expansion phase and in the adulthood phase. Mature startups can get equity loans from banks because they meet all the criteria. However, mature startups also have the cash flow. and profits, and you might not want to execute on equity loans in the first place.
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