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Financing: It Isn’t For the Faint of Heart

A Short Primer on Financing Alternatives

Presented to the Circuit

This presentation describes financing alternatives and ranks them according to degree of difficulty to obtain. The range of alternatives includes:

  • Easily-accessible private sources such as family and friends
  • Sometimes overlooked sources such as seller financing and earn-out arrangements
  • Organized equity investment groups such as angel investors and venture capital firms, and
  • Debt options that range from traditional bank financing to more costly and more complicated subordinated debt arrangements

The Circuit (www.thecircuit.net) is an organization that serves the Cincinnati metropolitan area’s technology community. With 175 member companies, the Circuit assists technology-related businesses as well as promoting the overall development of technology resources in the Greater Cincinnati area.