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BUS 2255 Entrepreneurship

What is Capital for Entrepreneurs

Startup capital refers to the money that entrepreneurs raise to meet the costs of starting a business venture. Common sources of startup capital often include angel investors, venture capitalists, and banks.

New companies use startup capital to cover various business expenses such as office space, payroll, research, product development, and marketing. Entrepreneurs typically provide compensation to the investors or institutions who provided the startup capital in the form of equity.

If the business grows in value, so does its equity pricing, providing investors with a significant return on investment. In the best-case scenarios, investors earn a positive return while the startup covers costs and can scale.

source:  https://masschallenge.org/articles/startup-capital/

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