Matthew Roddan writes
Project Funding ~ An Introduction by Matthew Roddan
Project funding is financing projects based on projections and a business proposal. In other words, these are more like non-recourse loans, based on projections for a project and repaid in the form of profits from the business. Money is raised from investor(s) or sponsor(s) and they’re promised control of the company in case the business doesn’t turn out as projected or expected.
Originally, mining, telecommunications and transportation related companies were keen on getting investor(s) or sponsor(s). However, project funding is no longer industry specific. When checking out a potential project, a lot of factors and risks should be weighed up – technical, environmental and financial aspects, political risks, market status, etc. Project funding can also be arranged through loans, crowd sourcing or through the internet from sites like Project 99.
Long-term projects are not usually taken up, instead investors opt for long term projects like constructions on a JV basis. The investor(s) or sponsor(s) decide the financial model based on project appraisal report. This will include the projections of the project in question and based on the calculations, a suitable financial structure is arrived at.
When individuals or firms are looking for sponsor(s) or investor(s), it is important to understand they would come under scrutiny. Their proposal would be scrutinized thoroughly and all criteria will come under review. Generally, investor(s) or sponsor(s) have their ideas, interests or specifics on choosing projects and executing the same. It is a good idea to have a list of questions to ask a prospective sponsor(s) or investor(s) to know if it is a mutually beneficial partnership.
Anyone who is investing or sponsoring a project would want to see what efforts are taken at the other end. That’s one reason why individuals or firms looking for project funding go with a detailed proposal and financials. This shows planning, research and analysis, which can persuade interested sponsor(s) or investor(s) to take the plunge. Project funding could be tricky in a few situations due to political factors, currency or legal system and other risks. In such scenarios, most prefer having a mediating party to get through with the legal aspects.
Matthew Roddan of project funding site Project 99 says the site though launched recently, they have an innovative project funding concept. They intend to help project owners gather funding through self-help method.
Matthew Roddan of project funding site Project 99 says that they’re not a fund offering or investment opportunity as many think. They’re offering a platform for like-minded individuals to share and gain information. In case a project is of interest and an investor wishes to proceed, they’ll be happy to come up with a proposal and get the process rolling.
Matthew Roddan of project funding site Project 99 also adds that private placement programs have garnered a lot of interest, though not many are able to crack the code of success for it. While they’re real programs, not many can make the cut due to the large amounts involved in qualifying. Matthew is confident they can get over this problem, by pooling funds to reach the high threshold and reach success. Besides, the control is vested with the investor(s) and they’re funds and the control for their account remains with them and they can pull out anytime. Looking for reliable project funding? Head to Project 99.