Project funding is capital raised to support a specific project through a variety of methods, including debt financing (loans), equity financing (selling ownership), grants (non-repayable funds), and sponsorships. A specialized form, project finance, is a mechanism for large-scale ventures like infrastructure or energy, where funding is based on the project’s future cash flows rather than the sponsors’ balance sheets.
Types of project funding:
Debt Financing: Obtaining loans from banks or other financial institutions. The funds must be repaid, with interest, over time.
Equity Financing: Investors provide capital in exchange for ownership in the project, with potential returns based on the project’s success.
Grants: Non-repayable funds from government agencies, foundations, or other organizations, typically for specific initiatives like research or social programs.
Crowdfunding: Raising small amounts of money from a large number of individuals, often through online platforms.
Corporate Sponsorships: Funds provided by corporations in exchange for marketing or advertising opportunities related to the project.
Venture Capital: Funding from professional investors who specialize in high-growth, early-stage companies.
Angel Investing: Funding provided by wealthy individuals for early-stage startups.
Specialized approach: Project Finance
Basis: Relies on the project’s own projected cash flows to repay lenders, not the overall credit of the sponsors.
Risk: The project itself assumes the financial risk, which is a form of limited or non-recourse financing.
Application: Often used for large, capital-intensive projects in sectors like infrastructure, energy, and mining.

The project funding process
Define the project: Clearly articulate the project’s goals and scope.
Conduct a feasibility study: Evaluate the project from financial, economic, and technical perspectives.
Assess risks: Identify and evaluate potential risks, including project-specific and macroeconomic factors.
Secure funding: Based on the above, seek funding from the most suitable sources, which may require preparing detailed work plans and performance metrics.

We raise capital for small to large projects and also secure funding through payments guarantees.

No project is too small or too big for Nexus Mill Advisors Group.