Lesson 4- The Layers of Finance
Capitalization serves as the foundation of a company which can be attained through investment capital, either by lending the company some money or by buying the company’s stock by an estimated value. Hence, adding equity/stock options to the company.
Seed funding works by sourcing money from potential investors in exchange for a share in the company to get things started. Additionally, fundraising events are held for example, offering necessities to the public like promotional t-shirts, hot coffee, mugs, and many more, mainly to bring additional money.
Startup capital raises money by entering into ventures to achieve the concept of the business agenda and sometimes accept venture capital from Venture Capitalists. In
reality, it is sometimes easier to raise a million dollars than to make a million dollars for your company.
The Layers of Finance
You might ask what formation is, basically, it is the process of registering, the Incorporation of your business ideal model through a corporation or LLC with your state/other “Tax Shelter Haven” which provides more privacy rights for your awareness. Everything in business shouldn’t be taken personal right; ,let’s not mix the two, that’s all. Personal accounts separate from your business accounts