Financial Support

Funding for the implementation of technology-based companies can be both public and private, and may come from your own resources or external funds.

Own Funding

• Contributions from developers are those funds provided by the entrepreneur himself. It is the primary means of funding in early stages, not only financial resources but also in knowledge, time and dedication.
• Family, Friends and Others: additional contributions to the capital of the company by who are close to the entrepreneur. In most cases, are designed not to lose the investment made instead of making substantial capital gains, since the investment decision is more based on knowledge of the entrepreneur that profitability criteria.
• Business Angels are individual investors, usually entrepreneurs or business executives, who provide capital for private purposes and pursue an active participation in management. For example, offering expertise and network of personal contacts, with the aim of assisting in the implementation of the company and obtain medium-term capital gains.
• Venture Capital: are professional investors who participate on a temporary basis, usually minority, the capital of companies with high growth potential to stimulate development and increase its market value, in order to obtain medium-term capital gains.
• Self-financing: obtained by the resources that the company is generating.
• Support and Grants: are repayable contributions of government agencies to entrepreneurs and companies to promote compliance with targets. They may be specific programs, tax credits, soft loans, indirect support through improved services and infrastructure, etc.. They are one of the most attractive means of financing, but should be secondary weight given their constraints.
• Participatory Loans: This is a financial instrument that provides the company with long-term resources without interfering with its management. Finance business projects as a whole, looking at all sorts of tangible and intangible investment. Can be of two types: convertible capital, after a period and a specified price, the loan becomes capital of the company, and non-convertible, are obligatorily must return the loan.

Other resources

• Bank Financing: banks offer a wide range of forms of financing. They can be short term, those debts to be repaid over a time horizon of less than one year, and long-term the ones longer than one year. The most common are:
• Loans: a financial contract whereby a financial institution engaged in a sum of money for the company, which receives at a single time, assuming the obligation to return on a regular basis in conjunction with some interest over a predetermined period of time. Are usually linked to a particular investment in consumer goods, production or service.
• Credits: it is a financial contract whereby a financial institution gives a company the right to borrow up to a certain amount for a predetermined time period. Only pay interest on the amounts disposed of and not the full amount of credit granted. This is a generic financial instrument and not tied to any particular transaction.
• Debt Issues and Bonds: these representing part of a loan issued by the issuing company, with which it is expressed the interest rate and terms in which the capital should be returned. They are divided into shares and have names such as bonds and promissory note.
• Suppliers: this is the funding that trade creditors granted to companies to delay the payments to be made. It is difficult to achieve but also necessary to reduce the average period to maturity of the company.
• Leasing: it is a contract with purchase option whereby the lessor acquires goods for hire, purchased property at the end of the contract.
• Renting: rental is a transaction of goods and services and better protection of leasing contracts. It is a more expensive option but the company management and ensures the smooth operation of the property.
• Reciprocal Guarantee Society: it is a corporation with variable capital by entrepreneurs whose purpose is to provide security guarantee for its partners to enable them access to loans at the best market conditions. Therefore, it is not itself a source of funding, but a facilitator of access to sources of funding.