How to raise funds for e-commerce websites?

Source: Internet
Author: User
For e-commerce websites with insufficient funds, which of the following financing methods is more suitable for the securities market, venture capital, and bank loans?
Text/Ye Jing

With the rapid development of the Internet, e-commerce websites have sprung up, but after a period of development, they all encountered the same problem: capital shortage.
 
 
 

Many websites do not lack good development ideas or talented people, but do not have money. As a result, the entire e-commerce website has encountered the same situation. During the period of website construction, the owner no matter what the content is, but finds a way to find money, borrow money from a bank, or attract venture capital, or directly go public to raise funds.

There is no hard indicator about the financing channels that some companies should choose. Each operator has its own understanding and choice. As a website operator, how can I choose a financing channel suitable for my website development? Maybe, looking at the Pioneers and comparing ourselves, we will find some points.

Securities market financing

Financing through the securities market is a direct financing activity. It means that an enterprise issues corporate bonds or shares directly to investors to raise funds to expand the scale. The following is an example of Amazon public financing.
Amazon went public in May 1997. In the early 1998 S, the price was less than 10 USD per share. One day in December 1998, the opening price was already 243 USD, and once broke through 300 USD. In January 11, 1999, shortly after the stock split into three parts, Amazon's share price opened at $158.875, closing at $160.25, and hitting a historical high of $199.125 after the stock split. That is why the stock continued to rise, so that Amazon's market value was evaluated to be worth $ February 1999 in Early 25 billion. Interestingly, at this time, Amazon was still a loss-making company, and Bezos never concealed it, and even reminded short-term and small-sized investors to pay attention to it. What is the reason? Wang Juntao said that at that time, many people thought that a company like Amazon would be damn, and there must be bubbles in its loss. But when people say it, it began to make money. "It will not make profits today without the so-called 'found' accumulation! But I don't know what the bubble is? No matter what kind of industry requires some time to mature, and the larger the investment, the brighter the future of the industry, the longer its growth period. If you set up a smoke stall, you can make money immediately. But if everyone is doing this kind of 'smoke' business, who is responsible for the industry ?"

Unlike Amazon, Baidu staged the Nasdaq myth. In August 5, 2005, Baidu, the most anticipated Chinese concept of the year, officially landed on Nasdaq, USA. According to the materials previously submitted by Baidu to the Securities and Exchange Commission, the IPO received a total financing of USD 0.109 billion, setting a new record for overseas listing of Chinese Internet companies.
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