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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


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Updated Oct. 2, 1997 by bwwebmaster
Copyright 1997, Bloomberg L.P.
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