What will happen to a project taht have insuffient funding?

Answer 1

Well, it depends. In principle, the project may die or halt until you raise additional funds. Or you may have to sell this project to someone who has the means to fund it further. If by then you have incurred liabilities in connection with that project, you might or might not be able to get the buyer to assume them. If the adequacy of the initial funding is uncertain, it is best to structure the project in such a way, that the progress based on the initial funding will yield some demonstrable results, e.g. will include a filed patent application, or will include acquisition or some distribution or manufacturing rights. By obtaining such demonstrable results with the initial funding you will also demonstrate your practicality and management skills, which will be an important factor in obtaining the next tranche of funding. Needless to say, your funding related contracts must be well thought out, and your project team well qualified and well managed. This answer was submitted by Alex Wolf. P.E., MBA, president of of Alex Wolf & Associates LLC, www.alex-wolf.com