Describe how this benchmark company started financially and how it has grown. Compare this company to your conceptual venture by discussing how your venture might be funded similarly or differently.

XYZ Inc. was founded as a modest business by two investors who put $200,000 into their savings. Over the course of five years, XYZ Inc. grew by attracting venture capitalists and increasing sales. The company raised $1 million by its 10th anniversary, with a total of 10 full time employees. Its annual revenue was around $5 millions.

In comparison to a conceptual venture it’s likely similar funding methods will be employed for a startup, such as savings from personal accounts and investments in venture capital. Depending on the size and scope of the project or the business model proposed, however, it may be necessary to consider different options. Other options, such as angel or crowdfunding investment, may be required if more money is needed up front. Loans could be considered in the case of debt financing.

No matter which financing option you choose, there will always be associated risks that must be considered before investing money or resources.