BRC MANAGEMENT CORP.

www.bluerockcapital.com

Traditional sources of capital

© 1995 BY TERRY COLLISON. MAY BE REPRODUCED OR QUOTED WITH PROPER ATTRIBUTION.




Here are the four "obvious" and most often discussed sources:

• Institutional venture capital funds

• Banks

• Corporate partners

• Private investors, "Angels," and high net-worth individuals

 Here are 13 more likely sources of entrepreneurial capital: • Savings/House Equity

• Friends & Relatives

• Loans on Life Insurance

• Sweat Equity

• Loans from Employees or Partners

• Customer Progress Payments

• Trade Credit

• Consulting & Engineering Contracts

• Contract R&D

• Slow Payments to Vendors

• Joint Ventures

• OEM Relationships

• Deferred Salary

 The Competition for Funding: • Research, proof-of-concept and product development programs

• First-time entrepreneurs

• Start-up ventures

• Follow-on support for established ventures

• Spin-offs from large corporations

• Acquisitions and buy-outs
 
We'd be pleased to hear from you...

BLUE ROCK CAPITAL makes long-term equity investments in promising seed-stage and early-stage ventures in the Mid-Atlantic region from the Carolinas to New England. The Fund emphasizes information technology, business services, and related fields. It does not invest in biotechnology, invasive medical devices, pharmaceuticals and certain other situations. For more information, please see www.bluerockcapital.com.

Virginia G. Bonker
230 Lackawanna Dr.
Andover, N J   07821-4113
 Tel 973 426-1767  Fax 973 426-0224
virginia@bluerockcapital.com
 Terry Collison
5700 Kennett Pike
Wilmington, DE  19807-1312
Tel 302 426-0981  Fax 302 426-0982
terry@bluerockcapital.com