Financing options for ventures in Latin America

09/19/2021

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To make this form of financing possible, it is necessary to approach small investors who, in addition to having small capitals that can invest, have the knowledge to advise the entrepreneur. Generally, this type of financing is given through digital platforms, and although the amounts raised may not be very high, the project becomes visible in the digital world and this can help its growth.

 

  • ·         Venture capital

It is a type of financing carried out by investors with much more experience in the development and growth of companies that bet on venture capital, or risk capital. Venture capital is a type of financial operation that provides capital to companies or projects with high growth potential, but also high levels of risk. This is granted in exchange for a percentage of the company.

 

  • ·         Seed capital

This financing is also usually provided by investors with extensive experience, who seek to invest in projects with high growth potential that guarantee a return on their investment. In addition to the economic resources, investors usually provide advice, counsel, contacts, dissemination and other actions that help the venture to grow, consolidate and position itself in the market.

 

  • ·         Bank financing

Financial institutions offer plans according to the needs of the entrepreneur, but they are usually granted to people who already have a credit history with a positive rating. These debt schemes are the most traditional, and they can be used to obtain the amount needed for the venture, according to the start-up and growth plans of the business.

 

  • ·         Incubators and/or accelerators

These are companies or organizations dedicated to supporting entrepreneurs in the early stages of development of their productive projects, in order to provide not only economic capital, but also infrastructure, advice and knowledge for the consolidation of the project.

 

  • ·         Government financing

Through programs or plans to support small businesses, government institutions provide public funds to encourage entrepreneurship in the community. Usually, the amounts allocated to the projects are not very high, as these resources are often lost due to non-payment.

 

As you can see, there are different financing options to get your project off the ground, but it is necessary that you evaluate which one is best suited to your venture. Consolidate your idea, analyze your needs and look for the ideal financing to make it a reality.

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