Capital Library

Capital Library

There are many ways to fund your company and you have multiple paths available. There are new types of parallel capital emerging every day, and you can now combine and recombine these capital types for different stages of your business. Explore options below or let us know a capital type you’d like us to help understand or explain. Special thanks to Parsons students Ayush Biyani for research, Natasha Seng for design, and Vaidehi Supatkar, and Fas Lebbie for concepts and direction. Also check out our Business Model Library.

Revenue Based Financing

Investors inject capital into a business in return for a share of ongoing revenues with a capped upside

Investors provide capital into a high growth technology business in exchange for an ownership share

An amount of money given to a for-profit or non-profit for a specific purpose after the completion of a qualifying process

A way to raise funds online by convincing a large number of people to each give money for a specific project or cause

A system of exchanging one service for another by using labor-time as a unit of value stored and redeemed between participants 

Investors use artificial intelligence to aid in discovering and evaluating companies for stronger deal flow 

A hybrid of short-term debt that converts to equity after a conversion event occurs (usually when a startup raises its next round of funding) 

A way of raising money from  a community of customers or backers to finance projects and businesses in exchange for small slivers of ownership 

Lenders provide capital to an organization that already has a resource that can be converted into cash, and the loan is secured by that resource or asset.  

 

 

The Simple Agreement for Future Equity (SAFE) Note is designed to speed the process and reduce the legal costs for the first round of growth company funding.

 

Investors provide capital into an organization with measurable social or environmental benefits and a path to growth or fiscal sustainability. 

Debt Crowdfunding is a way of raising money to finance projects and businesses based on small loans, ranging from high interest to low or no interest. 

A Social Impact Bond (SIB) is a multi-party contract enabling the government to pay for better social outcomes.

A PRI is an investment made by a foundation to pursue its charitable mission rather than to generate income

Pedigree Capital is the value placed on a person or team whose prior experience and education are seen as kinetic potential for starting a company.

We have a long list of alternative capital types to explore, what do you think we should describe next?

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