This chapter discusses how a project's financing can be made cost effective while maintaining the liquidity throughout the early stages of the project. The composition of the financing portfolio is often critical to the longer‐term success of an investment project. The key to determining the right financing portfolio is to develop a detailed understanding of the expected cash flows of the investment. The first step, therefore, is to produce a forecast of the cash‐flow curve of the investment project. The best approach is to develop a financial model of the project that includes all the relevant variables, such as market price in liquid time horizon and estimated market price in illiquid time horizon, market share, unit variable costs, etc. In second step, the management needs to make sure that they fully understand the risks inherent in the project. By combining the business plan information in first step with the risk assessment results of second step, investors can determine the optimum amount of capital required for the investment and the financing structure adequate to meet a given level of confidence.