Finance 101 for Startups
-- Hunt for ''angel'' investors, including relatives, before quitting your job. You'll need seed money to get the business going.
-- Run the company on a bare-bones basis during the startup, paying employees, investors, even suppliers, with equity.
-- Continue to raise money as you scout out venture-capital firms that have invested in companies like yours--and succeeded.
-- Don't be beguiled by the first venture capitalist to show interest. Keep shopping until somebody actually coughs up money.
DATA: BUSINESS WEEK
Updated Oct. 2, 1997 by bwwebmaster
Copyright 1997, Bloomberg L.P.