Investment-Based Financing

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One of the most popular ways to obtain financing for a business is investment-based financing. Investment-based financing relies on wealthy investors or companies who like your company’s concept and decide to take a chance and invest in the business. Believe it or not, there are individuals who invest for a living! Venture capital is money invested in an emerging or new business. Often venture capital investment is in the form of stock (ie: for corporations).

Small Business Investment Companies (SBICs):