Have you received any bank or government funding to date?
By Venture Giants
Bank or government funding should also be viewed the same as personal cash invested into your business. Because you most likely had to sign a personal security note or guarantee when you obtained the funding, these loans will be your sole personal responsibility if something was to happen to the business. Additionally, if you are looking to determine a pre or post money valuation of your company, this can be factored into the equation as an added equity contribution on your part (again, because you are personally liable and responsible for these loans outside of the business).
If to date you have received bank or government funding into your business, Angel Investors will need to recognize and appreciate the fact you have successfully raised capital through bank or government sources. Not only does this show them other people or groups believe in your company but you have also likely personally guaranteed these funds which demonstrates increased commitment on your part.
Venture Giants Inside Edge
Even though you didn't invest your existing cash, always remember that this is still considered the same as investing your own capital regardless and if an investor does not recognize this it is your responsibility to point this out to them during negotiations.
Venture Giants is a premier UK business Angel investment network and small to mid sized business networking portal that matches active business angel investors with entrepreneurs' seeking investment capital and business funding.
Written for and behalf of Venture Giants Enterprises Ltd. All rights reserved 2009
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