Portfolio investments include stocks, bonds and mutual funds.  Liquidating or cashing your investment in stocks, bonds or mutual funds to raise capital for your business could potentially earn you more money than the interest from your mutual funds for example.  And financing your business with your own capital is always preferable to borrowing money and earning interest on it.

Tips on liquidating your finanaces:

Decide which funds are worth liquidating: Cashing investments with a higher value gives you more money but it may be hard to buy them back.

Don’t put everything in once basket: If you have an investment portfoliio, don’t cash all of it so you’ll have something to live on if your business does not work out.

Research the business well: Don’t put up a business just because it looks plausible.  If you are confident that your business plan is sound, and liquidating your portfolio is the only thing that’s holding you back, then go for it.

Liquidating your assets makes you more cautious.  Since it’s your own money, you are more careful.  You cover all areas before you start your business, you’re more discerning in choosing your partners and you put yourself in a position where you can best succeed.