Eli5, how do new business that make a product that can taken years to get to market ever make enough money to stay in business while they are waiting for their products, especially at the smaller scale? I’m thinking thinks like cheese, wine, whiskey, etc.

Question

Eli5, how do new business that make a product that can taken years to get to market ever make enough money to stay in business while they are waiting for their products, especially at the smaller scale? I’m thinking thinks like cheese, wine, whiskey, etc.

In: 5

Answer 1

Venture capital and loans via investors.

Many people are happy to invest their money in something for a payoff in a few years. Maybe they want a portion of the revenue. Maybe the want to diversity their portfolio by owning a cheese business, but don’t want to run the business day-to-day, or maybe they are just into helping people get started.