Financing SmartFundit Way

Traditionally, financing against receivables, firm contracts that produce cash flows in coming months or even years, has been a good source to finance operations.

SramanaMitra blog has an interesting writeup on how entrepreneurs can use traditional and innovative financing options to Boot-Strap their ventures. With the help of marketplaces such as Smartfundit, entrepreneurs can even assist their customers finance their technology investments and expedite selling process.

Though I do not completely agree that these mechanism can substitute venture capital, I do agree that "working capital" nature of needs can be financed using such finance mechanisms. If the venture needs capital to fund asset creation including IP , entrepreneur does need risk capital to finance it.

I also found a useful Jargons section on SmartFundit that you can use to understand various options you may have to finance your needs.

Important lessons for entrepreneurs: Look for Venture capital if you need to finance assets that involve significant monetization risk. If you just need finance for working capital, there are better ways to finance your business.