Quantum Ventures Studio

You will need money, but how much and when?

Capitalization in general terms is the amount of money that you have to run the business.

Good investors care about the right capitalization, so think about the correct amount rather than being either shy or crazy.

Here are common sources of money;

This yourself put in some money and don't just take it out as pay that does not count, you don't need to equal the amount put in by professional investors just show that you are willing to as they say put some skin in the game;

There's your friends, family, and fools. Not everyone who offers you money is a qualified investor, you know taking money from your grandmother might be okay but it also might be illegal. When in doubt ask a qualified lawyer or chartered public accountant;

There's the government, you got investments or grants also known as free money which might be available to you.

(In some parts of the world having an investment from your government is a very powerful validation.)

There are angels, an angel is a high net worth individual a qualified investor who invests in opportunities, then;

There's super angels, a super is a group of angels. They typically have someone in their group, leave the group into good opportunities;

Family officers, wealthy families often invest in opportunities. The family might manage their money or hire external professionals. then;

There's venture capital, also known as VC, a VC raises a fund of money from others, like banks, governments, corporations, etc. and then in turn invests that money. then;

You got your private equity or PE. PE traditionally invests in existing businesses rather than startups, but PE has started moving into earlier stage opportunities such as startups. then;

You got your smart versus your dumb money, whether money is smart or dumb it's not a question of IQ, but has everything to do with whether they understand your business or industry. 

Whichever type of investor you go with, find someone who actually understands your business. 

There's equity when you sell all a part of the ownership in your company.

Round means the range of time and associated activities for which you're going to need money.

Trench in English, we use this french word for slice when we talk about dividing up money in a round.