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If you decide you want to create a business and pursue financing, the next question you must ask is: is this business investable or not? Determining if a business is investable requires you to understand the market size that the solution addresses. Based on market size the right funding may be non-dilutive funding, such as grants or foundation funding. Dilutive funding which will require you to give up a portion of your ownership could be from angel or VC funding. What is non-dilutive funding? A company that receives non-dilutive funding, such as government grants or foundation funds, keeps 100% of the equity, in other words, you don't have to share the equity (profits or losses) with someone else. Dilutive funding requires you to give up some equity in your business. Early dilutive funding might come from Angels. Angels tend to invest smaller sums of money, usually invest locally and might be driven by specific interests of their members. Venture capital usually invests in larger amounts. Very few VC firms invest in early-stage companies. There are some private equity groups that might invest, and you can consider alternative sources like crowdfunding. Also consider the investing arm of large corporations. Companies like Johnson and Johnson and Intuitive Surgical have their own separate investment arms that make investments in companies. Sometimes these investments come with a partnership to help the start-up company advance their technology.

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WHAT INVESTORS VALUE

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Investors value a company's intellectual properties less than inventors do, because they know that there is a lot of work to be done before a product can get to market, and they also know how costly it is to penetrate the market. The management team is very important, and several interested parties that would be interested in acquiring it would be better. Also, you must consider how much gain your technology is going to do for the users, and how bad is the pain of the users? Most companies that acquire a product need to protect their intellectual property. The cost of patent protection worldwide is very expensive, so investors must cover those costs if they want to sell the company later. Market size, competition, alternative products in clinical trials, all these things are always in the mind of investors.

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