10 Tips to Help Find Startup Investors

You've got an amazing idea but you need to find investors to make it happen. Unless you have been in the game for a while and already have been networking with people that are looking to invest, it might seem overwhelming when you are trying to get started.

You know your business is going to be successful once you get it off the ground but how are you going to make it happen?

Continue reading this article and we are going to give you tips on how to get investors for a startup.


Investors Are Out There

Before you get started looking for investors, you should know that they are out there looking for you, just like you are looking for them. There are people and venture capital (VC) firms actively looking for great ideas to put their money behind.

The following tips will help you find these VC startup investors and angel investors.


1. Be Prepared

You might not know when you're going to meet someone looking for an opportunity. Be prepared before you even plan on looking for investors. You never know when you might meet an angel investor or prominent VCs along with other well-connected individuals.

Figure out how much capital you need and be able to show investors exactly how you're going to get their money back. If you aren't prepared, you could miss out on a golden opportunity but if you are prepared, you might stumble upon an opportunity of a lifetime.


2. Just Make Progress

If you don't raise all of the money in the first round, that isn't a big deal. Once you get enough capital to get started — get started!

Work on getting your product together right away and sell other investors on being a part of the project by showing them how much progress you have made.


3. Look for Industry Specific Investors

You don't want to work with just anyone. You don't only want money. When you are looking for investors, you should look for people that are experts within your industry.

When you work with industry investors as your partner, not only can their money help you — their expertise can also help you. Finding people that have "been in the game" for a while will help you rocket ahead of any competition that might be going at it without help from someone in the industry.


4. Show Value and Take It Away

When you are looking for investors, you are more likely to get investors if you don't need one. If you know that you have a lot of other options, you can show the value of your company and take it away by nicely letting them know you have other options.


5. Don't Skip the Relationship

Investors want to invest with people they know, like and trust. While you don't have to know someone for years, it is helpful to build a relationship with people before you ask them for money.

Go out, be social and meet the people that can make a big difference in your business.


6. Minimize Risk

Investors don't want to invest with people that aren't sure about their projects and the level of risk. 

Investors want to know that you have minimized risk as much as possible.

Investors' goals are to get as big of a return as possible in the shortest amount of time.


7. Check for Similar Businesses

A simple way to find investors that are willing to put money into your type of business is to see who has done it before. Look at other businesses that are similar to yours and see who put money into those businesses when they were first getting started.

Many of these people already understand how these businesses work and understand the risks. Since they understand the risks and how they work, they are likely to be less worried about getting their return back because they already know how it is likely to go.


8. Understand that Investors Aren't the Only Way

When you know that investors aren't the only way to go, you won't come off desperate when you are talking to potential investors. Investors are one of the most expensive means of funding your startup.

Consider traditional loans and other means of funding before looking for investors.


9. Network, Network, Network

You never know who you know and who the people you know have in their network until you ask. 

Don't be afraid to let people know that you are raising capital. You might even find out that someone of the people are know are looking to put their money into something that is going to bring them a good return.


10. Know Your Stuff

Before you start pitching anyone, make sure you know your stuff. If you don't show how much of an expert you are when you are speaking to the potential investors, they are likely to pass you up. These investors don't want to spend time babysitting you so they can get their money back.

If you don't make a good first impression, they are going to go find someone else that does know what they are doing and put their money into their business.


Find Investors and Make a Difference

Now that you know how to find investors for your startup company, it is time to make a difference in the world with your new company. Companies that are truly successful make a positive impact on the world and that can be you.

Feel like you need some additional help and information? We have many other articles that can help you on your road to a successful business. Browse our site, find your favorite section, drop a bookmark and come back soon for more great reads.

5 Best Sources of Funds for Business Startups

Once you have researched the market and written a business plan, you will need to think about acquiring funds. The US Small Business Associate even provides a fillable PDF spreadsheet you can download to calculate your startup costs.

You can get the funding you need to help open your startup if you use the right sources.

Your company deserves a chance to take off. If you need help backing your startup, keep reading. Here are the five best sources of funds for business startups simplified.


1. Use Your Savings

This is one pretty obvious. There is no better place to look than in your bank account. If you have savings, you should use it to invest in your business first. The more money you are willing to put in, the more others will believe in you enough to invest, too.

Using individual savings is common for new business owners. If you don’t have savings, there are avenues you can take to create a business funding first.


2. Find Investors

Investors can come from all walks of life. You can network to find a silent investor who believes in your vision. Or, you can turn to loved ones who can afford to gift you the money.

By partnering up with an investor, you won’t have to worry as much about startup funds. However, many investors want to see you have a solid plan and have put in as much money as you can.


3. Crowdfunding Sources of Funds for Business

Crowdfunding involves seeking funds from fans and future consumers. You can find sites that make it possible to share your business plan and ask for donations. With enough outreach, you may be able to obtain the funding you need.

Crowdfunding doesn’t always work. You should try other funding sources to ensure you don’t miss promised deadlines.


4. Get a Side Gig

As much as you may not want to work for another person, getting a part-time job can help fund your business. You will have to manage your time wisely, but once your startup kicks off, you should be able to drop the temporary position.

Some side gigs you can try are writing, virtual assistant, customer service, or a position in your new field. You will continue your work skills while earning the money you need to be your boss.


5. Obtain a Loan

A term loan gives you a set amount with a repayment schedule and a fixed or floating interest. Many businesses use loans for real estate, equipment, inventory, and other startup costs. Obtaining a business startup loan will help you get where you need to be.

Term loans are considered secured loans. These small business start-up loans require collateral you could lose if you fail to pay. These are common for new businesses or those without credit.


Plan For Startup Success

Now that you have read about the best sources of funds for business startups, you’re ready to plan for success. Use what you learned here to get the money you need for your company. You can combine ideas for higher investment costs.

Your sources of funds for business startups are a crucial part of your company. Keep exploring our blog for the best financial advice and tips and learn more today!

Financing Challenges Faced By Small Businesses

Most businesses focus on spending money to make money with the goal to grow and expand. For that, companies require funding, which is a formidable concern for many. 

Financing is the backbone of any business, whether it is small or big. With cut-throat competition out there, it is a challenge that is faced by every industry — it is more apparent for small businesses due to their size and the uncertainty regarding its return on investment. So, they often do not qualify for conventional financing. 

The above chart shows that most small businesses (32%) are started with cash. From purchasing a physical location to advertising your products and offering online services, every small business needs capital at the initial stage. First, it's raising the capital and then comes its management. 

Most entrepreneurs launch their company on a shoe-string budget. According to a recent financial survey of startups, 60% of businesses started with less than $10,000. Raising $10,000 is relatively easy for larger, more established firms while smaller companies find it rather challenging to cough up such a large sum. When it comes to financing small businesses, there seem to be several factors at play. 

Mentioned below are some of the financing options and challenges associated with them that are faced by small businesses. 

1. SBA Loans 

A Small Business Administrative (SBA) loan refers to the amount of money borrowed from a bank or a financial institution to start or expand a small business. When determining how to get an SBA loan, the qualifications considered are quite a few. With the necessary tools, no company is rejected from securing such loans. However, a small business faces challenges when they opt for an SBA loan. 

Challenges Faced In SBA Loan Financing 

• Banks and Financial Institutions are not willing to offer loans to small businesses. A survey has revealed that banks denied 82% small business loan applications in 2024. Banks and financial institutions deem small business loans as far riskier than lending to big firms. 

• There are certain charges associated with processing a loan application that is borne by the borrower. These charges are the same for small businesses opting for smaller amounts as for big companies that are seeking to secure massive amounts. For a small business, these charges and fees are enormous, which may become a burden on the business itself. 

• Banks and financial institutions demand higher interest rates from small businesses to cover higher risks associated with them. It can be depicted from the graph below, where 46% of the SMEs faced such an issue. 

• Usually, a small business cannot offer a collateral to the bank despite having workable business plans. 

• Often banks will require personal guarantees/mortgage on individual properties of the owner of a small business. 

2. Debt Financing 

The term Debt Finance refers to a situation when a company sells bills, bonds, or notes to investors to raising working capital for the firm. The investors who purchase these bonds, bills, or notes also receive a promise from the business that they will get their money back along with interest at an agreed rate within a stipulated time frame. 

Challenges Faced In Debt Financing 

• A small business is hampered by the unavailability of records, which could be presented to the lenders to determine the creditworthiness of the borrower. There is an aura of uncertainty around the future performance of the small business which does not go well with the investors who seek security for their investment along with the stipulated returns. 

• Most small businesses are unable to provide a valid credit score from a reputable agency. 

• Investors would want security for their investment before disbursing funds to the small business. Since debt financing is risky, security can be obtained through detailed business plans, the financial strength of its owners/directors and a list of business's assets (if there are any). 

• As a rule of thumb, an investor would not increase the amount of debt to a small business until there is a corresponding increase by the company towards the collateral. It means that every time you go to the investor for a loan, they would require you to put in more equity into the business. Most of the time, this is not possible for the owner. 

• Investors are reluctant to offer short and medium-term loans to small businesses since a long- term loan can be secured with the help of mortgages. Small businesses, on the other hand, rarely seek long-term investments because they are more expensive and do not suit their business model. 

• Investors usually demand higher interest from small businesses compared to their larger peers. From the investors' point of view, the higher rate of interest covers the higher risk involved in working with a small business. For the company itself, the higher rate of interest becomes an extra expense. 

3. Equity Finance 

Equity financing is a process in which capital is raised through selling shares of the company at stock exchanges. The company offers ownership to the public (investors) so that they can raise money in an equity financing deal. 

Challenges Faced In Equity Financing 

• The stock market does not trust small businesses. Even if the stock market allows them to offer shares, it will be of little value. Consequently, the company will be forced to issue more shares to raise just a small amount of money. 

• A typical investor in the stock market has a choice of investing in big established firms who have a proven track record of paying good dividends. In the presence of such firms, it is implausible that an investor will invest in a small business. 

• Even if an investor chooses to invest money in a small business, he will not be able to resell those shares in the market when he needs cash. 

Face The Finances 

It is true that financing a small business is indeed a tough nut to crack. Once you have considered the viability of each financing option, it can help overcome your problems. The rise in capital ensures money management in the form of reduced debt and cash flows, which can help your business survive in tougher times. 

You need all the help you can get to improve funding for your small business. Read more articles on money management and ditching debt right here on the Frugal Finance Blog!

4 Options To Start A Business With No Bank Loan

An inability to access finance kills off many great business ideas before they even get off the ground. It doesn't matter how great the idea might be, how original the concept is, or how many potential customers might buy your product or service - if you can't put together the money to get started, it is never going to happen. That is a major problem for freelancers and for people trying to leave the world of employment to set up on their own for the very first time. 

The first port of call for anyone looking for a business loan is a bank, but traditional banks aren't always very helpful. If you have no track record in business and, therefore, no way of demonstrating that your business can turn a profit, they are disinclined to lend. They are even less likely to lend if you have had personal issues with cash or credit in the past. You might have the best new business idea anyone's ever heard, but if you defaulted on a credit card three years ago, a bank almost certainly wouldn't give you the money you need to turn that idea into a reality. It sounds crazy, but it is true. 

Perhaps we’re being too hard on banks. After all, if a friend came to you asking for a $1000 loan on the basis that they might be able to pay it all back to you next year if their idea works out, would you give it to them? Lending for a new business is, from a bank’s point of view, like playing UK Online Slots. Most of the money that a player bets on an online slots game is lost. Occasionally you will get lucky and land a winner - and the winnings might even be far greater than the losses - but there is no way of knowing how the bet will turn out until you have placed it. If banks operated like online slots websites, they would all be out of business. They’re usually against high-risk lending, and that’s why it might serve both you and them better to look at an alternative means of financing your business - an alternative means like one of the options we’re about to outline below! 

1. Peer To Peer Lending 

This P2P route still involves borrowing money, but it cuts banks out of the deal. Peer to peer lending is a process that connects people wanting to borrow money with people - or perhaps even groups of people - who are in a position to lend it. Typically these people will be involved in or have an interest in the industry you’re looking to do business in, and so they are likely to have a better understanding of your business model than a bank would. 

Typically speaking, a peer to peer business loan comes with lower rates of interest than a bank loan. They're also open to people who've had credit difficulties in the past - although if you've had credit issues, you can expect your initial interest rate to be a little higher because of it. Go through a reputable broker rather than straight to an individual for your own protection, but there's no reason not to at least give this option a look. 

2. Crowdfunding 

Not every business or business model is suited to this method, but if yours is, this might be the easiest way to get your idea off the ground. Rather than approaching one company or one person for a large loan, you can take small amounts of money from hundreds - if not thousands - of people. The nature of your product or service is of vital importance here because it will have to be something people genuinely want and need for them to be motivated to contribute, but if you can spark their imagination, you might find that the public is more generous than you ever imagined. 

While this method would have been unthinkable a decade ago, it’s become increasingly common during the past five years and is likely to be more common in the years to come. Just remember that you’ll have to ‘reward’ your investors in some way, whether that means a free product or service in return for their investment or a longer-term share in your new company. 

3. Grants 

There might be a grant scheme available to people opening businesses within your chosen sector - and you might not even know it exists. In fact, it's more likely than there is a grant scheme available than there isn't - there are grants and similar programs available for almost every type of business imaginable. Finding the right one might take time, but it's time worth investing. 

Grants generally come from governments, and governments are keen to help small businesses get off the ground because they're the employers of the future. There will be paperwork to fill in, and you might be in for a long wait, but waiting until the money is secure and in place is often better than diving in with borrowed money and being under pressure to make repayments immediately. If you're unsure of where to look, make an appointment with a citizens' advice bureau or a similar service to assist you. 

4. Mortgaged Equity 

We imagine that part of the reason you’re interested in setting up a business alone is that you want to be your own boss. Because of that, bringing in a partner might not appeal to you - especially a silent partner who will take a percentage of your earnings, but won’t be doing any work after their initial investment. You might be able to raise the money you need by, for example, selling 20% of your business to a future investor, but you may not be comfortable with losing 20% of your ownership before you’ve even opened your doors. 

The way around this is to mortgage your equity. You could get the money you need by offering an investor ten, twenty, thirty, or whatever percentage of the company you need to sell to bring money in, and then agree on a deal where you buy them back out of the company over time. It is a form of lending, but there is usually no interest charged as part of the deal because the silent partner is taking a percentage share of profits. You would need to find the right investor to agree to this deal - but they are out there, and the only thing you lose by looking is time. 

Keep Company Costs Low

Other than all of the above, keep your costs low. Start from your bedroom if you can. Don’t hire anyone until you physically can’t keep up with orders on your own. Do as much as you can online and keep overheads low that way. Getting a new business through its first twelve months will be one of the hardest things you have ever done - but it’s possible, and you can do it!

Financial News Now - Economy Update

The financial world has been turned upside down recently and things are changing daily. It's hard to stay on top of the latest economic developments and investing trends. Here are the Frugal Finance news stories you need to know now:

Treasury Secretary Janet Yellen has put lawmakers on notice: the U.S. is running out of money fast. That’s right, the money printer might turn off temporarily due to out of control spending in the last two decades (not just from Trump or Biden). Unless, of course, Congress raises the debt ceiling. Yellen has said that if Congress fails to raise or abolish the debt ceiling by mid-October, the U.S. will default on its debt for the first time in history. Yellen also indicated that such this potential event would be a catastrophe for the American economy. A default could have unprecedented consequences for the U.S. Domestically, it could cause the suspension of “Social Security benefits, child tax credits, and paycheck for the military.” Internationally, it could jeopardize the U.S. dollar currency and credit status, which recently was downgraded globally for the first time in history. 

Conservatives insist that they will oppose raising the debt ceiling or suspending it. To make matters worse, a default could coincide with a government shutdown if Congress fails to act quickly. Interest rates rose, sending stocks plummeting yesterday in response to some of the fears. The past several weeks have been stressful on Capitol Hill, as the Democrats have pushed to pass short-term funding and raise the debt ceiling whilst advancing President Joe Biden’s aggressive $3.5 trillion social infrastructure plan. Political opponents recently averted disaster by passing legislation to prevent a temporary government shutdown, with a few hours left to spare on the deadline! But that doesn't mean another potential government shutdown isn't on the horizon, especially with the partisan split bigger than ever before.

Last Tuesday was red Tuesday in the markets. The Nasdaq and Russell 2000 both gave up more than 2%. The S&P 500 sank 2.04% and the Dow dropped 1.63%. All but one sector closed deep in the red. Energy was the lone duckling to register a gain. $XLE gained 0.34%, but $XLK dipped 2.9% and $XLC collapsed 2.44%. The 10-year yield reached its highest level since June, extending the sell-off in tech. To make matters worse, Treasury Secretary Janet Yellen warned that the U.S. government will run out of cash unless Congress raises the debt ceiling. United Natural Foods had a day – shares spiked 27% to 3-year highs after exceeding earnings expectations. Here’s the full report. $LCID recovered its intraday losses in after hours, spiking 6.6% on the news that its first production car began production today. Deliveries will begin next month. The FAANG gang got hit hard – $FB fumbled 3.7%, $AAPL fell 2.4%, $AMZN descended 2.6%, $NFLX shrank 1.5%, and $GOOG gave up 3.8%. $GOGO went 37.6%, $DATS drove 26.7% higher, and $CEI climbed 18.4%.

Global investors grapple with sustainable investing, a labor shortage, and the insistence of employees to work remotely. This summer, we surveyed hundreds of LPs, GPs and service providers about their sustainable investment practices, gathering insights on an increasingly important topic to many in the private markets. We are breaking down the data by respondent type and region to determine what is driving investment decisions. This year's writeup includes a new section that separates VCs' responses from the broader category of general partners. Report topics include: What motivates sustainability efforts for LPs, GPs and others. How investors measure their strategies' impact. The biggest challenges when it comes to pursuing sustainable investing. The effects of the world's current social and political landscape.

VCs bet on the technologically unproven field of quantum computing. IonQ, a quantum computing company, is set to close a reverse merger with a blank-check company and begin trading on the NYSE today at a market capitalization of about $2 billion. Tech giants including Google and IBM, as well as startups like IonQ, Rigetti Computing, and PsiQuantum, are all competing to make the most powerful and reliable quantum machine. While a fully functional quantum machine is still a long way off, venture capitalist interest in the nascent technology is at an all-time high. Investors are betting that some real-life applications will emerge within the next five years, but most quantum computer hardware companies will still need significant capital infusions.

Planning to pursue infrastructure work long term? Private equity investors committed to growing their portfolio companies' government work may benefit from splitting their commercial and federal divisions. With the possibility of new federal infrastructure contracts ahead, now may be the right time to learn the advantages and best practices. Many good reasons exist to consider a split, including the different buyers, client journeys, communications and buying processes, decision-making, audit scrutiny, reporting requirements, and cost structures, to name several. Further, building separate commercial and federal divisions will create broader and deeper resources in both camps, which can be a go-to-market differentiator.

Shares in VC-backed biotech startup Oxford Nanopore jumped as much as 47% in its first day of trading on the London Stock Exchange, following an IPO that valued the company at £3.4 billion (about $4.6 billion). Oxford Nanopore specializes in DNA and RNA sequencing. It made a name for itself during the pandemic, developing COVID-19 testing kits. Its investors include IP Group, Tencent and Temasek. The company, which was valued at £2.2 billion with its last private funding round, is the eighth VC-backed UK startup in the biotech and pharma space to go public this year and the largest by market cap, according to new data. Oxford Nanopore sold 122.4 million new and existing shares at 425 pence apiece, raising £524 million in the offering. IP Group said the IPO generated £84 million for the investor, which will retain a 10.3% stake in the company.

America’s leading producer of memory chips handed investors a small surprise in earnings today. However, the surprise coincided with a forecast that booming demand wouldn’t continue into the next quarter. Micron Technologies reported EPS of $2.42 (analysts expected $2.34). The company also booked revenue of $8.27 billion, a small beat (analysts expected $8.21 billion.)  Revenue was up 36.5% YoY. Those figures should inspire confidence among investors. Unfortunately, there was one big hazard that dampened the otherwise solid quarter. The company’s guidance for the coming quarter suggested that Micron’s best days are behind it (at least, for the next few quarters.) The company expects revenue to be $7.65 billion next quarter, which is a far cry from the $8.49 billion that analysts expected. The company’s EPS guidance was also lower. Micron anticipates non-GAAP EPS of $2.10 next quarter (analysts expected $2.48.) The company’s Q4 2021 earnings coincided with the release of full-year earnings, which can be read here. All-in-all, Micron’s FY 2021 revenue was $27.71 billion, with this quarter being its best by a sizable margin. $MU stock fell over 6% on the news. Other chipmakers fell in sympathy with Micron, including $WDC, $AMD, and $STX.

Pfizer, Moderna, and J&J have become the undisputed winners of the COVID-19 vaccine race. That’s why pharma giant Sanofi is dumping its COVID-19 vaccine candidate to refocus its efforts. Sanofi’s mRNA COVID vaccine flexed a strong performance in its study. According to Fierce Biotech, “between 91% and 100% of participants had a fourfold or greater increase in neutralizing antibody levels over baseline.” In other words, it was pretty effective. However, it might not be as effective at competing with existing vaccine candidates by the time it’s ready for market (late 2022.) Because Sanofi’s vaccine would be extremely late to market, the pharma company is instead focusing on COVID boosters and moving on to greener pastures in the vaccine space. The company says that the next stop for its mRNA platform is a quadrivalent flu vaccine. Sanofi is already one of the leaders in the flu vaccine space, so this move makes a lot of sense. According to a press release issued today, the company plans to initiate clinical studies for its flu vaccine in 2022. Sanofi’s high hopes for mRNA kicked off in August with its acquisition of Translate Bio. The company paid $3.2 billion with the intention of building mRNA vaccines to address “current and future infectious diseases.”

Amazon announced its latest slate of new products this morning, and guess what? THERE’S A ROBOT. Amazon closed up its fall product release today with some fancy gadgets to kick off the 2021 holiday season. Among the gadgets announced include a smart thermostat, the Echo Show 15, a new partnership with Disney, Amazon Glow, a fitness tracker, the Ring security drone, and Astro: Amazon’s new home robot. Astro the Robot moves independently, has eyes and a body, and features Alex’s voice assistant capabilities to control smart home devices — it even acts as a guard dog (or should we say, a guard bot?). Amazon’s robot costs $999.99, but its official release date is TBD.

A suits versus retail traders saga continues as Citadel and Robinhood executives vehemently deny Citadel’s role in pressuring Robinhood (and other brokers) to halt stock trading during January’s MemeStock Madness. A number of ongoing class action lawsuits are starting to surface additional details about January’s stonk madness with Gamestop and AMC. Robinhood responded, saying that the ongoing suits convey “a false narrative of collusion” between Robinhood and Citadel. Citadel’s Ken Griffin unleashed a slew of Tweets on Monday denying the firm’s role in requesting Robinhood to halt trading. The lawsuit’s plaintiffs allege that Citadel’s tremendous short position on $GME shares prompted the firm to pressure Robinhood to halt MemeStock trading for retail investors. Although top officials at Robinhood.com and Citadel had “numerous communications with each other that indicate that Citadel applied pressure on Robinhood,” Robinhood emphasizes “We will work vigorously to continue correcting the record with the facts.” In an internal discussion at Robinhood on January 27, Robinhood’s brokerage arm president said “you wouldn't believe the convo we had with Citadel. total mess”. Meanwhile, Citadel claims “Conspiracy theorists and plaintiffs’ lawyers are trying to concoct an absurd story from regular-way communications among Citadel Securities and the brokers who handle orders for retail investors.” So who actually has their story straight?

Bitfinex, one of the crypto world’s biggest (and most controversial) crypto exchanges, is once again in the news it is truly something alright. The exchange reportedly paid $23.7 million in transaction fees to deposit $100,000 on the blockchain. Oops. The British Virgin Islands-based exchange deposited $100,000 in Tether ($USDT.X), the stablecoin pegged to the dollar, to the decentralized exchange DeversiFi yesterday. Due to some error, the network charged the transaction a whopping $23.7 million as a gas fee. While DeversiFi called it “erroneously high” in a tweet, others took digs. The issue is pretty big since blockchain transactions are supposedly irreversible. To make things even more suspicious and weird, Tether and Bitfinex share common owners and executives. DeversiFi and Bitfinex are also closely linked. This is not the first time that Bitfinex is in the news for odd behavior. Earlier this year, customers lost nearly 119,756 BTC (more than $60 million) from the cryptocurrency exchange.

The S&P 500 and Dow Jones both bounced from yesterday’s dip. Where do we go from here? That’s anyone’s guess. The Nasdaq fell 0.24% to its lowest price since July and the Russell 2000 dipped 0.20%. Utilities bounced the hardest, increasing 0.91%. Consumer staples and healthcare also improved. $BNB.X was the only major large-cap coin in the green today, up 7%. Bitcoin and Ethereum traded marginally lower. Warby Parker went public today by way of the New York Stock Exchange. $WRBY opened at $54.05 and closed at $54.49, giving the eyewear company a valuation of over $6 billion. More on this below. Natural gas futures reversed 7.16%, falling from seven-year highs set yesterday. The U.S. is on thin ice — as the United States runs out of money, Treasury Secretary Janet Yellen warns of potentially “catastrophic” consequences for the U.S. economy. Read the full story below. $RGC ripped 33.8%, $PALT popped 60.1%, and $OMG.X gained 15%.

How The Grinch Stole Supply Before Christmas How The Grinch Stole Supply Before Christmas. Good evening, everyone. Another Thursday has passed us by! It’s only one more day till the weekend!! Every major index ended the day red. The Dow dove 1.6% and the S&P 500 slipped 1.2%. Not a single sector registered a gain. Industrials got whooped the worst, falling 2.05%. That’s one way to end the worst month for stocks since March! Bitcoin and Ethereum were the only ones to catch a bid. $BTC.X bopped 4.20% and $ETH.X increased 4%. Cotton futures closed at ten-year highs, sugar futures soared to four-year highs, and natural gas retook seven-year highs. Initial unemployment claims for the previous week totaled 362,000. According to Dow Jones, economists expected a total of 335,000. That sucks. The Delta variant, as well as raw material shortages, have likely slowed growth in the third quarter. The third quarter’s GDP is expected to grow at a rate of less than 5%. Oh, and a worldwide manufacturing slump has companies scrambling before the holidays. More on this below. $QTUM.X climbed 12.2%, $PALT ripped 26%, and $OPRX hopped 14%.

A Supply-Strapped Holiday Season? A Supply-Strapped Holiday Season? About a month ago, COVID lockdowns throughout Vietnam (a mega manufacturing hub for major US brands) posed serious issues for companies adapting to post-COVID demand. Now, they’re getting worse. In August, Abercrombie & Fitch CEO Scott Lipesky said “We are working through an extended closure of factories in Southern Vietnam.” Urban Outfitters CEO Richard Hayne shared the sentiment, saying that “We have a lot of product there, and we’re trying to get it in” regarding huge swaths of supply stuck in Vietnam mid-lockdown. As it turns out, August was an omen of bad things to come. After Trump’s anti-China tariffs, companies sought factories in other locations. Vietnam was one of them. Some companies like Gap, Lululemon, and Nike manufacture anywhere between 31-50% of their products in Vietnam now. But with the supply chain in flux, U.S. businesses are rethinking their manufacturing presence in the country. Nike lost out on 100 million pairs of shoes due to Delta variant-related lockdowns in Vietnam. Lululemon has started shipping goods on airplanes to keep up with demand. And Bed Bath and Beyond’s own pre-holiday earnings served as a warning for the rest of U.S. retail: expect supply-chain issues this holiday season. Despite increased demand, $BBBY sales plunged 26% through August and the company lowered its full-year revenue projections due to wildly expensive inventory shipping costs. $BBBY and $NKE aren’t the only losers, either. Retail stores fell in sympathy with the Vietnam-related concerns, including $KSS (-11%), $M (-8%), $JWN (-8%), $ANF (-7%), $GPS (-7%), $DBI (-6%), $AEO (-5%), and $TJX (-5%). So did the Grinch steal supply?

There are many multimillion-dollar paintings collected by Bezos, Andreesen, and Leonardo DiCaprio. In fact, the finance bros at Deloitte projects the real art world (not NFT junk) to grow in value by 58% through 2026. That’s a whole lotta fun coupons! Why the rare “Double Down Alert” on art: J Pow aint printing Picassos, so art can cover your ASSets Contemporary Art returns 23.2% when inflation’s > 3%. Literally 0.01 correlation to stonks. Early investors returned 32% in 2020 with a Banksy exit using this art investing platform (splash). So what the heck are you waiting for?

Lordstown Is Selling (Not What You Think) Lordstown Is Selling (Not What You Think) Featured Image EV company Lordstown Motors is reportedly looking to sell its Ohio plant to Foxconn, the company that makes iPhones. The reported acquisition comes at a time when Lordstown is scaling up production of its electric pickup truck, Endurance. The company is also strapped for cash and looking to tap additional funding. However, a sale of its 6.2 million square foot plant would make a lot of sense. Lordstown uses just 30% of the plant, according to Reuters. Foxconn’s sudden jump into EVs is no surprise. Foxconn announced in May that it would build EVs for Fisker, an electric vehicle company. The Taiwan-based company has been looking for a place to call home for its EV ambitions in the U.S. Foxconn crashed out of a heavily-politicized tech manufacturing deal with the state of Wisconsin, which involved a $10 billion factory, earlier this year. Now, it might pick up steam in neighboring Ohio. Lordstown has been embroiled in controversy for months. In March, the company was accused of misrepresenting the number of preorders booked for its electric pickup truck. Hindenburg Research, which had previously gone after Nikola Motor, indicated that “the company’s orders appear largely fictitious.” That prompted an investigation into the Lordstown, which resulted in its CEO and CFO resigning. Lordstown is 10%-owned by Workhorse, the company that failed to secure a contract from the United States Postal Service for new delivery vehicles. In February, USPS awarded the contract to a defense contractor that makes military gear, concrete mixers, and firetrucks. Notably, it has never built a production EV before, just small runs of EVs. $RIDE ripped 8.4% today.

Lucid Preps for Delivery Speaking of EVs… Lucid is rolling vehicles off its assembly line with ambitions to begin deliveries next month. The company’s first vehicle, a luxury EV sedan called Lucid Air, starts at $77,400 (before tax credits.) We featured Lucid in the Rip last month after the company’s Lucid Air Dream Edition R, an ultra-limited-edition run of the vehicle, received an EPA-certified 520-mile range on a single charge. That made Lucid’s first vehicle the first electric car to breach 500 miles, pretty impressive! The Lucid Air has four editions, which have ranges varying from 406 miles to 520 miles. The company has booked over 11,000 reservations, which might not sound that impressive, especially when you consider that Ford has already received 120,000 preorders for its F-150 Lightning. But Tesla had just 12,000 reservations for its high-end sedan, the Model S, in 2012. Lucid is no Tesla (at least, not yet), although the company’s got a solid foundation for its first vehicle. But who knows where Lucid is headed from here. The company is valued at $41 billion as of this writing and went public via the Churchill Capital IV SPAC earlier this year. $LCID stock closed down 3.4% today.

TikTok is the latest to jump into the NFT rush. Today, the video-sharing social networking site launched a non-fungible token (NFT) collection that will see its top content creators partner with top NFT creators. TikTok fans will be able to buy their favorite ‘moments,’ and the platform has even created its own digital auction for the sale. According to the announcement, TikTok Top Moments will feature six “culturally significant TikTok videos.” Lil Nas X, an American rapper, will be the first creator to launch one-of-one/limited-edition TikTok NFTs with artist Rudy Willingham. TikTok will sell their NFTs on Oct. 6. The videos will also be presented at the Museum of the Moving Image in New York from Oct. 1 through Nov.5 in a collection entitled ‘Infinite Duets: Co-Creating on TikTok.’ TikTok’s NFTs will be minted on Immutable X, a layer-2 scaling solution that runs on the Ethereum blockchain, but this isn’t the first time TikTok has entered the crypto space. Last month, the company partnered with the cryptocurrency music service Audius.

Philip Morris International and Altria, two tobacco giants, have been made to stop the sale of their heated tobacco device, IQOS. The company’s IQOS tobacco device supposedly violated a patent owned by R.J. Reynolds, a rival in the tobacco space. IQOS is a heated tobacco product, which was marketed as a “safer” alternative to smoking cigarettes. The U.S. Food and Drug Administration said in its 2020 marketing authorization press release that using IQOS [reduced] “exposure to harmful chemicals,” but were still “not safe.” IQOS, which was sold by Philip Morris and licensed for sale by Altria in the US was an effort by the two tobacco giants to shift away from traditional tobacco products. IQOS didn’t make up a significant sum of their sales. However, IQOS was an attempt at reinvention for Big Tobacco, which has been in need of change. Unfortunately, change hasn’t come easy. Take Altria’s 2018 investment in Juul, which gave it a 35% stake in the leading e-cigarette company. Juul’s edge in the market was its flavored products, which were banned not that long after the acquisition due to accusations that it was targeting minors. Although, the company’s sales supposedly recovered after the ban. Altria ($MO) fell 6.6% and Philip Morris ($PM) fell 4.7% after the news broke and big tobacco takes another financial gut punch.

Warby Parker’s IPO via direct listing was a win for the eyewear company as its share price skyrocketed 36% above its reference price in $WRBY’s trading debut. $WRBY closed the day at $54.53 per share, +36% above its $40 reference price. By market close, Warby Parker’s valuation shot to about $6.8 billion — over twice the company’s $3 billion valuation from its last funding round. Warby Parker was founded over a decade ago as one of the first hallmark brands to provide one-stop eye check-up and eye-wear sales at most of its brick-and-mortar locations. The company is also one of the first direct-to-consumer prescription eyewear brands offering both online and in-person services. Not too shabby. We SEE you, $WRBY.

Gaming Technologies, Inc. (OTCQB: GMGT), a global leader in end-to-end gaming solutions, has added celebrity chef Gordon Ramsey to its rock-star lineup of brand ambassadors. Its current roster of premier partnerships includes Playboy and boxing champion Saul ‘Cannelo’ Alvarez.

Binance Coin ($BNB.X), the fifth-largest cryptocurrency by market cap, soared nearly 10% today. The move came on the heels of Binance Coin’s quarterly burn event. Every quarter, Binance buys back a large amount of $BNB.X to burn (coin burning permanently removes coins from the network.) With a reduced supply, tokens that remain in circulation theoretically become more valuable due to scarcity. In turn, that pushes prices up. Because the burn is tomorrow,  investors bought $BNB.X today in anticipation. Binance burned $390 million worth of $BNB.X in Q2 2021. Binance Coin was initially developed as a utility token that provided Binance users a discount on trading fees. Since it was launched in 2017, Binance Coin has become the native token of the Binance Chain and Binance Smart Chain. The latter has become one of the most active DeFi blockchains in the world.  Due to its many use cases, experts believe Binance Coin is worth keeping in the portfolio.

Dollar Tree is soon to be a Dollar Fifty Tree. This story hits close to home as the home of frugality and saving money. The discount dollar store retailer that previously only sold products for $1 or less just announced that it would be raising prices. The announcement coincided with an increase to the company’s share buyback program. The retailer (which historically sold items for a dollar or less) said that it would start selling certain items for “$1.25 to $1.50” to help pay for higher freight and wage costs. Dollar Tree’s price hike comes amidst a flurry of problems afflicting retail chains: inflation, supply chain woes, and a shortage of employees. Dollar Tree is also leaning into selling higher-priced $3-5 items, which are part of the Dollar Tree Plus collection. Dollar Tree Plus products are already in 340 stores and will be in over 1,500 by the end of 2022. On the news of the buybacks and price hike today, $DLTR rose 16.5%. Maybe money does grow on trees. Dollar tree shareholders are pumped but Dollar Tree customers not so much.

Dealmaking activity has rebounded in the France and Benelux region this year. From exits to fundraising, our latest report breaks it all down. Sweden's financial watchdog is looking into whether EQT violated disclosure regulations in a $2.7 billion share sale. The France and Benelux region has seen a huge rebound this year, as private capital activity is on track to surpass previous annual bests. In only two quarters, PE dealmaking virtually reached pre-pandemic levels, while records have been broken in the region on the VC side. Let's examines the PE and VC markets in France, Belgium, the Netherlands and Luxembourg, breaking down trends across deals, exits, fundraising and sectors. Key highlights include: Activity in Europe's second-largest PE ecosystem reached €87.6 billion in the first half of the year, marking a year-over-year increase of 55.2%. Swelling VC deal sizes put the region on the path to new heights. Fundraising activity had a robust start to the year for both PE and VC investors.

Sweden's financial watchdog is investigating whether one of Europe's largest PE firms violated regulations concerning the disclosure of insider information. EQT is facing a probe into whether it failed to publicize in a timely manner that former and existing partners were selling shares in the firm totaling $2.7 billion. The public offering allowed senior executives to exit some of their stock earlier than planned under a lock-up agreement that was supposed to last until late 2022. Financial regulator Finansinspektionen said that it decided to open an investigation over the "postponed publication of inside information" after being notified of the move by EQT on the same day as the share sale. After being contacted to justify the delay, EQT said in a statement that the firm "has handled the information correctly" and "looks forward to a continued positive and constructive dialogue with the Authority." Partners including chairperson Conni Jonsson and CEO Christian Sinding sold approximately 6% of the firm's issued share capital for 370 Swedish kronor (about $42.75) apiece. The partners said in a press release that they would commit to reinvesting 50% of the proceeds into EQT vehicles over the next fund cycle.

What's driving record capital in genetic medicine? Genetic medicine has attracted record-breaking capital in biotech, with roughly $150 billion invested since 2013. Gene editing enables scientists to precisely tackle the genetic root causes of diseases. Such an approach can be "one and done" and thus avoid the chronicity of the current standard of care. Rapid advancements in this field are creating a robust product pipeline and attracting record capital. But despite all the enthusiasm, companies should tread cautiously with this technology.

Investors are consistently allocating larger amounts of capital to startups that go on to exit successfully—a trend especially distinct with later-stage financing. Our recent analyst note is the third in our series breaking down venture returns by round. In this new installment, we've refined our approach to enable richer analysis of the flow of capital. The data suggests a clear relationship between capital raised and the success or failure of a company. The earliest stages, especially Series A, show asymmetrically high returns compared with later-stage deals. The attractive VC fund returns of the past few years have accelerated the increase in capital allocated to venture investing.

Swedish electric vehicle maker Polestar has agreed to go public through a merger with US blank-check company Gores Guggenheim. The combined company, which will be listed on Nasdaq, will have a valuation of around $20 billion. The deal includes approximately $800 million of cash from the SPAC, which is backed by PE investor Alec Gores and Guggenheim Capital, and a $250 million PIPE investment which will be used to invest in the production of new models and its international expansion. Polestar was set up 4 years ago by automotive giants Volvo Cars and Zhejiang Geely. In April, it raised $550 million from investors including Chongqing Chengxing Equity Investment Fund Partnership, I Cube Capital and Zibo City Government. Polestar is not the only European electric vehicle-related company that has sought to go public via a US SPAC. In June, Barcelona-based EV charger maker Wallbox announced plans to merge with Kensington Capital Acquisition Corp., valuing it at around $1.5 billion including debt. Earlier this year, Quell Acquisition Corp. agreed to combine with German electric aircraft maker Lilium at a $3.3 billion valuation.

Towns from Maine to Washington are still seeing fallout from ongoing closures of the US-Canada border. As China doubles down on banning crypto transactions, NFT marketplaces are using clever workarounds. Never before in history have so many people been under the gaze of so many strangers. One writer muses about what the internet has become, and what happens when the experience of celebrity becomes universal. How to prepare for the future of healthcare investing Are you prepared for the unique challenges facing private equity investors in the current healthcare landscape? At this year's HPE New York 2021 conference, an elite faculty of PE leaders will explore the most pressing challenges facing buyers and sellers.

Momenta, a Chinese startup developing autonomous driving technologies, has received a $300 million investment from General Motors. The company's other backers include Toyota, Dailmer, Tencent and Temasek. Emerge has emerged and raised a $130 million Series B co-led by 9Yards Capital, Spruce House Investment Management and Tiger Global. The Arizona-based company offers a logistics management platform for freight operations. Sternum has raised a $27 million Series B led by Spark Capital. The Tel Aviv-based company offers a platform to secure Internet of Things devices. Intelinair has raised $20 million from investors including Regulator Group and Scientia Ventures. The company offers a crop intelligence platform to help growers make data-based decisions. Intelinair was valued at $41.25 million in 2018, according to recent data. Windpoint Partners-backed Nelson Global Products has acquired Tru-Flex, a designer and manufacturer of hoses and exhaust products for vehicles and industrial use. Daiwa PI Partners has acquired Y International, a Tokyo-based ecommerce retailer of bikes, accessories, maintenance services and more. Daiwa PI bought the business from private equity firm The Riverside Company.

Our analysts will explore the records set throughout the first half of the year, despite lingering uncertainty around COVID-19 and macroeconomic volatility. Key statistics include: VCs completed €47.1 billion worth of transactions in H1 2021, signaling that the VC dealmaking environment has never been stronger. European PE posted its second-highest quarterly dealmaking total on record, thanks—in part—to growing vaccination rates and strong debt markets for leveraged buyouts.

The Augmedix (OTCQX: AUGX) platform, powered by artificial intelligence technology and expert human assistants, converts natural clinician-patient conversation into medical documentation. They provide live support, including referrals, orders, and reminders, so clinicians can focus on what matters most: patient care.

The Evergrande crisis, stagnant prices, investors cashing out are all signs of a real estate downturn and exposing the Chinese economy's dependence on property. This huge hit has impacted all markets, economies, investors, and even local businesses. 

There are new financial news stories and tech articles coming out every hour, so stay tuned to Frugal Finance for more breaking developments!

6 Steps To Get An Unsecured Business Loan

In this faced-paced life, acquiring a loan sometimes becomes a necessity for many businesses. When compared to larger companies, a smaller business may find it hard to survive in this cutthroat race. To combat the issues of capital and cash flow, businesses may opt to get an unsecured loan. That way, they do not have to pledge any assets as such. This might be the perfect solution to get the ball rolling for your business. However, there are certain phrases that you must be aware of before you go for this route. Here are 6 steps that might help you in getting an unsecured business loan for your company. 

1. Check Your Options 

Before you go for any type of business loan, you must check your options. The same goes for unsecured business loans; there are certain options that you should always check beforehand. The kind of loan you want is highly proportional to the need of that loan. The reason why this step is important is that there might be the case that you do not qualify for the unsecured business loans that you want for your business. The overall costs of this type of loan might be a bit higher than normal loans. That is because the level of risk involved in it is much higher. Analyze whether your firm is capable enough to bear this type of risk. It might require some kind of a personal guarantee from the owner of the business as it lowers the level of risk. Make sure you check all these options and see how compliant they are for you to be able to get an unsecured business loan. 

2. Clear Credit Report 

Another major step that you need to do to get an unsecured business loan is to have clear and precise credit reports of all sorts. It is possible to get this type of loan on bad credit reports also, but then for that, you might have to pay much greater interest costs. That is not wise at all, so it is best to raise your credit score as much as you can to get an unsecured business loan at preferable interest rates. Try to improve this score by correcting any errors in the reports and also by paying bills on time. The fastest way through which you can improve your credit score is to minimize your credit utilization ratio as much as possible. This reflects the amount of debt your business is carrying in regards to the amount of available credit that your company has. It is best to have a clear credit report so that it can make it easier to get an unsecured loan. 

3. Strong Business Plan 

To be able to get an unsecured business loan, you need to be able to have a plan that is convincing fully enough. You need to persuade the lenders that your business is worth it, and their loan is going to be secure. Make a strong business plan that is both organized and very considerable. When you make it, be certain that it covers all the important aspects like products and services produced in your industry along with a detailed market research plan. Everything should be incorporated in it including the: financial tactics, the economics of the business, the development & operations, marketing plan and risk assessments. This will give the lenders a clear picture of how your business is doing and will also make them see how well prepared you are to get the unsecured business loan. A strong business plan can be sufficient to persuade people if done correctly. 

4. Explore Lender Choices 

Before you go for one particular option of lenders for an unsecured business loan, you should do your research. The reason for that is that many different choices of lenders may offer you different rates and options. You need to choose a lender whose conditions and interest rates satisfy you completely. Some lenders offer a very speedy process the loan approvals and funding. The offerings of different lenders vary in several ways. Picking one that suits you the most in every way is the best way to go through with your unsecured business loan procedure. Some offer fixed rates while there are some dealers online that offer variable loan rates. Even most banks also offer the option of an unsecured business loan, so be smart in choosing the lender that is most suitable for your business needs. 

5. Have A Proper Application 

This is one step where some people often mess up, thus making them unable to qualify to get an unsecured business loan. Filling out the application process in the correct manner is also a very important part of this whole procedure. Important documents like tax returns and financial statements must be submitted promptly. Failing to submit an important document can lead to the disqualification of your loan. All the application forms that you fill out for the loan should be done very carefully. Any error caused there can be a huge issue for you. They may even require you to provide bank statements and other credentials of the previous years as well to check your credibility. Sometimes this process may take a few weeks also, but it is best to take your time and do it correctly. 

6. Assess Capital Goals 

Before you can secure the loan, you should be aware of exactly why you need the extra capital. Even though it might seem small, but this means financial obligation should not be taken casually. It does carry its levels of risk also so it best to complete figure out how you are going to put that money to use and how you will be able to pay it back. Fully examine your current strategies and then evaluate the way you are going to utilize the capital in. Different goals can make the loan amount different, so make sure you know what purpose are you going to use the loan for. Whether it is for added staff or machinery, the main reason should be clear-cut from the get-go. This can then set your plan in motion for the payback of the loan. Also by assessing capital goals one can improve the performance that can help him or her to pay the loan back easily. 

Conclusion 

Whenever you are applying for an unsecured business loan, make sure that you consider all these steps. These can help you in making certain that you are able to get a loan for your business successfully. The extra loan can help your business in many ways and make you flourish in the long run.