What is Entrepreneurial Finance?
In any form of entrepreneurship, cash is needed to fuel growth, the world of entrepreneurial finance is about where that cash has come from and what it is used for.
Different types of Entrepreneurial Finance
Bootstrapping is when a businesses cash for growth comes from it's earnt profit. It is also common for bootstrapped businesses to raise small amounts of capital from other sources at the start but this is not a bootstrapped businesses finance strategy. Their strategy is to grow as fast or as slow as their cash (profit) will allow.
Angel investors are high net worth individuals who make investment decisions with their own money
Venture Capital (VC) refers to an organisation that has been set up for the purpose of investing money. A limited partner (LP), is the entity or person who gives a VC money to invest on their behalf and then a general partner (GP) is the person who manages the VC fund and decides who to invest in.
Equity crowdfunding is when you raise finance via smaller contributions from many people. It is a recent addition to the Australian eco-system and is still being developed but has potential to play a large role.