Does any one have experience in fundraising without the help of any bank?

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February 14, 2021

by a searcher from Universidad Carlos III de Madrid in London, UK

We'd like to get the community's feedback on the following idea. We are considering raising a fund, but we need help with the idea of fundraising and finding investors, does anyone complete his or her financing without the help of loans, only using money from investors?

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Reply by a searcher
from Erasmus University Rotterdam in Amsterdam-Noord, Amsterdam, Netherlands
I have been involved in acquisitions that were preferable funded 100% by equity, this hurt the IRR of the investment as there was no debt with a lower cost of capital to leverage. But there were specific reasons why the investors preferred this approach vs. the risk of defaulting to debt obligations. The main reason was that the market was highly cyclical and the cost model of the company highly variable.
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Reply by a searcher
from Helsinki University of Technology in Helsinki, Suomi
you meant that one would use only cash - no loan? what do you mean? I think bank dont help with fundraising. they just give loan if that.
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