Capital Financing

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Cost of capital - The cost of capital for a firm is a weighted sum of the cost of equity and the cost of debt (see the financing decision). Firms finance their operations by three mechanisms: issuing stock (equity), issuing debt (borrowing from a bank is equivalent for this purpose) (those two are external financing), and reinvesting prior earnings (internal financing).

Micro venture capital - Micro venture capital financing invests in projects too small to attract the attention of more traditional venture capitalists but too big or risky to attract capital from traditional lending sources. See venture capital.

Venture capital - Venture capital is capital provided by outside investors for financing of new, growing or struggling businesses. Venture capital investments generally are high risk investments but offer the potential for above average returns.

Capital Improvement Plan - Capital Improvements Plan - A CIP is a long-range plan, usually four to six years, which identifies capital projects and equipment purchases, provides a planning schedule and identifies options for financing the plan. Essentially, the plan provides a link between a city's comprehensive and strategic plans and the city's annual budget.


Suggested Web Sites

Lighthouse Capital Partners - Investment focus: debt financing to technology based start-up companies already receiving financing commitments from venture capital firms.

GP Capital - Corporate finance advisor specializing in matching private companies with relevant sources of venture capital.

Strategic Capital Resources, Inc. - Focus: finances emerging growth companies through private placements with individual angel investors.

Source: BazSites.com

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