Local Startup Secures Funding for Technology Designed to Help Retailers
On behalf of John McDuff, Attorney at Law posted in Business Transactions
Austin-based startup NewComLink – which was founded in 2008 by Suneet Paul and Jim White, formerly of Dell Financial Services – recently announced that it has secured $10 million in venture capital financing. This funding will help the company introduce technology designed to change the way businesses handle consumer credit – namely by giving shoppers more credit options as they are in the check-out line.
“Retailers lose tens of billions of dollars each year because they tell customers ‘no,’ instead of offering them other options,” Paul told The Statesman. “We want to make sure that no customer walks away without some form of purchase.”
Like several other technology companies in Austin, such as Freescale Semiconductor and Tivoli, NewComLink received part of its funding from Austin Ventures. NewComLink also received capital from StarVest Partners.
Funding Options for Startup Businesses
Any entrepreneur can attest to the fact that starting a business doesn’t come cheap. In many cases, the funding for a startups come from business owners themselves – who dip into their own savings, use credit cards or get home equity loans to make their business dreams come true. In other cases, these entrepreneurs get funding from their friends and families, bank loans, business grants or from people known as angels – that is, individuals with a high-net worth who believe in what the business owner is trying to accomplish.
In other cases, entrepreneurs are able to obtain venture capital for their startup businesses – although companies first starting out are generally unable to get this type of funding. In order to be considered for venture capital, business owners must provide potential investors with a business plan that includes information on the potential customers and earnings of the venture.
When entrepreneurs are able to secure venture capital for their startups, they must be careful about the terms of the agreement – which may require that they pay a percentage of their profits. In order to ensure the best terms in an agreement, an entrepreneur should consult a qualified business attorney – who can advise the business owners of the law and negotiate the best terms in a venture capital arrangement.