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What You <i>Really</i> Need to Know About Startup Financing

Don't waste your time looking for money in all the wrong places. Here's the truth about startup financing.

This story appears in the October 2003 issue of Start Up.

When physical therapist Jodi Medell opened a running store in Santa Fe, New Mexico, she had time on her side. Her home had sold, and as a result, Medell had a critical ingredient in any start-up financing plan: collateral to secure a loan, the lack of which can ground even the most inspired idea.

She also found a supporter in a local banker, a fellow runner who thought Medell's vision was well-suited to the Southwestern town; the nearest such store was an hour away. "Everything fell into place," recalls Medell, 33. "My house was on the market for a while. Right before I desperately needed money for collateral, it sold."

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