Educate Co. Finance Module: Analysis of Funding Sources Report

This report analyzes the various funding sources available to Educate Co., a company seeking financial support for its operations. The report discusses three primary sources: angel investments, venture capital, and bank loans. Angel investors are highlighted for their early-stage support and mentoring, while venture capital is presented as a source of high-growth potential, bringing expertise and governance. The report also covers traditional bank loans as a flexible funding option. Each source is examined with its advantages and disadvantages, providing a comprehensive overview of the financial landscape for the company.

FINANCE

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
Educate Co.......................................................................................................................................1
Sources of finance available to company ....................................................................................1
REFERENCES................................................................................................................................2

Educate Co
Sources of finance available to company
Company requires fund for running the operations of business smoothly. For running the
operations of business funds are most essential. Educate company could raise funds through
various sources such as :
Angel Investment Funds
The angel investors are individuals who invests large amount of sum for supporting the
business models that have validated idea and faster growth prospects (FENG and ZHU, 2018).
Through the start up funding the investors get over board for mentoring and advising to grow
much faster.
Advantages
Angel investors are highly experienced professionals and business having deep
knowledge in the business. They can guide the company in reaching towards goals and
objectives.
Venture Capital
Venture capital is the professionally managed funds which is deployed in the hyper
growing companies with the enormous potential (Styhre, 2020). They invest in the equity of the
company. Venture capital is becoming the most popular source of finance.
Advantages
This source brings more to the table such as high knowledge and experience, corporate
governance, networks, PR and senior leadership in company. However they also acquire control
on the business.
Banks or NBFC
Loans are most conventional source of finance for the business. Banks or NBFC does not
seek for only proven business models but also give chance to new business models (Sazonov,
and et.al., 2016). They provide funds at a fixed interest rate.
Advantages
They not hold any control on the business or its operations. Loans are more flexible than
the other sources of finance. Loans are available for both short term or long term. Loans are
provided by creating a charge on the assets of company.
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REFERENCES
Books and Journals
Styhre, A., 2020. In the Venture Capital Market: Raising Funds and Dealing with Investors and
Financiers. In Indie Video Game Development Work (pp. 153-183). Palgrave Macmillan,
Cham.
Sazonov, S.P., and et.al., 2016. Alternative sources of business development: Mezzanine
financing. Scientific papers of the University of Pardubice. Series D, Faculty of
Economics and Administration. 37/2016.
FENG, J. and ZHU, F., 2018. Discussion on the Problems and Countermeasures of Raising
Funds for Capital Construction in Universities: Taking the Construction of Chengdu
University Campus as an example. Engineering Economy. (9). p.17.
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