CLOTHAL

FASHION RENTAL APP

CAI, QUINN XAVIER
CENIZAL, JUSTIN
LIU, WILLY
TY, KALE MENDELL
FUNDRAISING METHODS
Friends and Family
Funding
Bank Loans

Angel Investing

Bootsrapping
Crowdfunding
FRIENDS AND FAMILY
ADVANTAGES DISADVANTAGES
Simpler and faster than formal Potential to strain personal
investment methods, with fewer relationships if the business
legalities. struggles or fails.
Offers flexible terms like lower Limited capital availability,
interest rates or easier repayment restricting growth potential.
plans.
Lack of business expertise and
Provides emotional support from
networking connections compared
those who believe in the
to professional investors.
entrepreneur's vision.
Strengthens commitment due to Managing equity from personal
personal trust and belief in the investors can complicate future
business. investment rounds.
ANGEL INVESTING
ADVANTAGES DISADVANTAGES
Angel investors offer valuable The funding amounts from angel
mentorship and guidance. investors may be limited.
They provide networking opportunities Startups often need to give up equity,
that connect startups with potential leading to a loss of control.

partners and investors. It's essential for investors and

founders to align their interests to
The decision-making process is less
avoid conflicts.
formal and faster, allowing startups to
Future investment rounds may dilute
access funds quickly.
the angel investor's shares if
Successful angel investments can lead
agreements are not properly
to additional funding rounds.
structured.
CROWDFUNDING
ADVANTAGES DISADVANTAGES
Crowdfunding helps test market Success is not guaranteed; many
demand and build a customer base campaigns fail to reach funding
before launch. goals.
It generates media attention and public Creating a compelling pitch and
interest as a marketing tool. rewards can be time-consuming.
This method allows startups to raise Platforms usually charge fees,
funds without traditional investors. along with marketing and
Successful campaigns can raise more fulfillment costs.
than their funding goals, providing Publicly sharing ideas increases the
extra capital. risk of intellectual property theft.
BANK LOANS
ADVANTAGES DISADVANTAGES
Loans have fixed repayment Loans often require
schedules, aiding financial collateral, posing risks if
planning. the business fails.
They don’t require giving up Banks usually have strict
eligibility criteria
any business equity.
regarding credit history.
Timely repayments can
The obligation to repay
improve the business’s can burden startups with
creditworthiness. unpredictable revenue.
BOOTSTRAPPING
ADVANTAGES DISADVANTAGES
Entrepreneurs maintain full Self-funding limits available
ownership and control over business resources, slowing growth.
decisions. Entrepreneurs risk their own
Bootstrapped businesses focus on capital, which can be burdensome.
sustainable, steady growth. Time and money invested could
There are no pressures to meet loan have yielded higher returns
repayments or investor returns. elsewhere.
Successfully bootstrapping signals Growth may be slow due to
potential to future investors. reinvestment limitations.
FUNDRAISING METHODS FOR
OUR STARTUP
Friends and
Family Funding

Angel
Investing
JUSTIFICATION FOR FRIENDS
AND FAMILY FUNDING:
Friends and Family funding suits our
startup’s early-stage needs.
Enables quick access to small capital for
concept development and initial marketing.
Less formal terms make the process simpler
and reduce financial pressure (e.g., lower
interest rates, flexible repayment).
Provides emotional support from those who
believe in our vision.
Ideal for early stages, allowing growth
without pressure from larger institutional
investors.
JUSTIFICATION FOR ANGEL
INVESTING:
After securing Friends and Family funding, we will
pursue Angel Investing as we grow.
Angel Investing provides essential capital and
access to industry knowledge and connections.
We will seek angel investors once our digital
service gains traction to raise additional funds.
Funds will help enhance our platform, increase
marketing efforts, and strengthen our market
position.
Angel investors offer favorable terms, focusing on
startup success rather than immediate repayment.
In exchange for support, they often seek equity
shares and may take a role on the board, aligning
with our vision for sustainable growth.
 DATA-DRIVEN INSIGHTS
Data from the Asian Development Bank highlights
that 62% of tech startups struggle with access to
capital.
Others
Many founders in Asia rely on personal resources 35% Family and Friends
and informal funding due to difficulties in securing 39%

traditional financing.
39% of startups use a mix of personal funds and
contributions from friends and family, emphasizing
the importance of informal networks.
Only 26% of startups secure angel investment, but
it remains a valuable option for those with viable
products.
This data supports our strategy to first seek funding
from family and friends before pursuing angel Angel investing
investors as our startup grows. 26%

https://www.adb.org/sites/default/files/publication/884641/philippines-ecosystem-technology-startups.pdf
 STEPS TO APPROACH
INVESTORS EFFECTIVELY
Friends and Family Funding:

1. Prepare a Pitch: We will create a clear and simple pitch to explain our business idea,

funding needs, and growth plan.

2. Transparency: We'll be upfront about the risks involved and offer flexible terms, like a

loan with lenient repayment or a small equity share.

3. Draft Agreements: We’ll draft basic agreements outlining the investment amount,

repayment expectations, or ownership share.

4. Regular Updates: To build trust, we will provide regular progress updates and involve

our supporters in product trials and feedback sessions.

 STEPS TO APPROACH
INVESTORS EFFECTIVELY
Angel Investing:

1. Refine Pitch and Research Investors: We will identify potential angel investors in our

industry and refine our pitch to highlight our business model, market opportunity, and

financial projections.

2. Create a Pitch Deck: We’ll prepare a compelling pitch deck and seek introductions

through networking and pitch events.

3. Transparent Discussions: During meetings, we’ll be open about investment risks and

rewards, defining investment terms and equity stakes.

4. Involve Investors: Once funded, we will keep our angel investors updated on our progress

and involve them in strategic discussions, leveraging their expertise to drive growth.
CHALLENGES
AND SOLUTIONS
Friends and Family Funding
Challenges
Limited Funding Capacity
Lack of Business Expertise

Solutions
Diversify Funding Sources
Leverage Emotional Support While Seeking
External Mentorship
CHALLENGES
AND SOLUTIONS
Angel Investing
Challenges
Equity Dilution and Loss of Control
Difficulties in Finding the Right Angel Investors

Solutions
Carefully Evaluate Terms Before Accepting
Investments
Target Strategic Angel Investors
CLOTHAL
FASHION RENTAL APP
CAI, QUINN XAVIER
CENIZAL, JUSTIN
LIU, WILLY
TY, KALE MENDELL