People looking for seed capital often assume that venture capital will fill the bill for them. It won’t. Venture capital is a later stage funding in most cases.
Watch this video explaining how it works.
Clayton Christensen talks about seed capital, venture capital, crowd funding, and more.
Watch the interview here:
Funding Small Business Growth with Individual Retirement Funds
There comes an inflection point in nearly every stage of small business development where growth stagnation is inevitable except for the infusion of some form of capital, human or otherwise. Unfortunately, such inflection points can also be extremely time-sensitive as in, “we need for growth and we need it now!” The recent credit squeeze has also been detrimental as small businesses have been hurt the most by dried-up liquidity in financial markets. Luckily, there are a number of ways to tap existing funds, including using retirement funds as a method for funding small and medium businesses.
Self-Directing Retirement Accounts
While the more complex structure of self-directed IRAs and solo 401(k)s have existed for many years, the rapid mainstream acceptance and affordability of such accounts has only materialized in recent vintage. Unlike a traditional IRA, a self-directed IRA takes administrative control out of the hands of the IRA custodian and gives it back to the account holder. This means investors are free to invest in products other than stocks, bonds, mutual funds and money market accounts.