6 Ways to get funding for your new startup

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6 Ways to get funding for your new startupIts time to raise capital for your new venture! If you are not in the position to spend your own savings to launch a business, here are a few ways to gain funding for your venture.

1.Venture Capital

Certain niches draw ven­ture capitalists more than others, especially tech startups which have a high potential for growth and long-term staying power. This financing is granted by firms to promising companies. Typical venture capitalists in­clude investment banks, seasoned invest­ment companies and other financial entities. Chunks of company ownership are sold to the venture capitalist groups through in­dependent limited partnerships. It’s ben­eficial for both parties as the founders will have the funding to really grow their busi­ness, and the VC investors have a stake in the company, which could potentially lead to massive income in the future.

2.Crowdfunding 

Start a campaign on Indiegogo or Kickstarter to raise money for your startup. You will need a decent amount of money to film and edit a video with high-quality production value, that showcases your product in a creative way. Users of the website will front money toward the campaign with the promise of receiving a discounted product should the project reach its financial goal. It’s a win-win because you’ll receive the funding for your business, yet also have an instant group of customers to spread the word about the product.

3.Angel Investors

These investors are wealthy individuals looking to invest their own mon­ey in small-scale businesses. Oftentimes, these investors take a liking for a startup and are inspired to see it become estab­lished. You’ll need a detailed business plan and polished “elevator pitch’ to present to investors on why your business deserves a chance.

Angel investors can include friends and family members, and they are often a source of advice along the way.

5.Startup Competitions

Apply to be in a competition to present your idea in front of a group of investors. You’ll need self-confidence and a level of comfortability. There are smaller competitions as well that you can pursue in your country which may make you a bigger fish in a small pond, with a greater chance for success.

6.Loans

This route is not ideal for people without a secure income stream. Avoid tak­ing out a loan unless in a stable financial place. You can approach local banks and present your idea, but banks will often con­sider small businesses to be too risky.

It’s never ideal to do it all on your own. Search online on sites like LinkedIn or Twitter and reach out to professionals for tips and advice. Look up local entrepreneurship groups in your area that you can join to meet like-minded people. Join Meetup groups to connect with new individuals in your industry or even to just expand your network. Become a presence in the city by engaging with the community. You may be able to raise your startup capital by meeting interested business opportunists.

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