Venture Capital Funds. They involve the taking of temporary holdings in the capital of the company so that it can start its journey and increase its value until a contractually fixed time arrives when the venture capital company sells its participation to achieve a benefit.
Crowdfunding. An option increasingly used, thanks to different Internet platforms, which seek that through collective cooperation can develop specific projects.
Participative loans. It consists of the transfer of part of the shares of the company to a capitalist partner. The main characteristic of the participative loans is that a variable interest rate is fixed, which is calculated based on a percentage agreed on the benefits that the company obtains.
Business Angels They are private investors that offer capital so that entrepreneurs can start up their business projects, usually in exchange for a shareholding.
Alternative Stock Market. It is a market similar to the stock market that is exclusively aimed at SMEs.
Alternative Fixed Income Market (MARF). Its purpose is that SMEs can issue fixed income products (such as promissory notes and bonds, mainly in the short term).
Venture Capital or Corporate Risk Capital. It supposes giving entrance in the capital of startups to big industrial groups and corporations.
Advantages and disadvantages of private financing The main advantage is that we have to fund for our project since many entrepreneurs resort to this type of funding due to the lack of access to bank financing.
As for the conditions, they can be of all kinds, better or worse, from obtaining money without any consideration using crowd funding, until having to pay a high price to repurchase shares of the company if the business has gone well.
Another disadvantage is the disclosure of the project before its implementation. If we publish our project on the Internet to look for funding, let's make sure it is not readily imitated.
But the main drawback is the loss of independence, since, in many cases, private investors will take shares in society, to control the proper use of the financing granted, hoping to obtain significant capital gains on their investment.