Take a sniff. We are sure you could smell it – the smell of fresh, brilliant ideas. Since a long time, ideas are in the air. Everyone has one, which they believe is game-changing. They might even be right. But how many of these game changing ideas see the light of the day? Very few. Because having an idea is just isn’t enough. You need people to believe and invest in it as well.
It is difficult for an investor to invest in a brand with a new idea. Investors usually want to invest in a business with a relative experience. Your brilliant business idea would ultimately mean nothing if it doesn’t have the funding to turn it into an actual business. Therefore, it becomes imperative to not only find ways to get funded but to analyze your business from all the angles to know what funding opportunities are best suited to your business.
A business without an investment is like a fish without water. If you don’t want to be that fish, below is a list of various funding opportunities for all you young entrepreneurs.
5 Easy Ways To Find Funding For Your Startup
It is one of the newer, more popular forms of funding where anyone can help a business monetarily. An entrepreneur can put up a detailed description of his/her business – what you are about, goals, future plans etc. Platforms like Indiegogo or Kickstarter provide entrepreneurs the opportunity to locate funds. The consumers can read about the business on these platforms and contribute money if they want. The person making the contribution then makes a pledge to pre-buy the product, gives the donation and is usually rewarded for it.
Since crowdfunding is “trendy”, it has become a highly competitive form of funding. While some campaigns may get the attention of the consumers, many might go unnoticed and hence unfunded. It all depends on how catchy your business appears to the consumers. So, plan accordingly and decide if crowdsourcing is your cup of tea or not.
2. Join a startup incubator or an accelerator
Accelerators and incubators have become an important part of the startup eco-system. They not only provide startups with mentoring and guidance but also with the right working conditions for a business to grow and flourish. Their primary objective is to produce successful and financially viable firms that can survive on their own.
Through their network and connections with all the important industry people, it becomes a little easier for a startup to be noticed by the right people. Accelerators and incubators make sure that their startups are trained right and have the opportunity to present their ideas in front of the investors.
3. Venture Capitalists
Venture Capitalists are a group of investors who specifically look for startups to invest. The downside is that they won’t just sell on a business idea. They look for startups with proven business models and strong teams which are scalable and fundable.
If you are looking for VCs to fund your startup, you need to be a little flexible with your business idea and also be ready to lose a little control of it in the future. If VCs are investing money in your business, they would want a return as well. In fact, a VC would stop at nothing to get a return on investment, even if it means compromising your original vision.
4. Angel Investors
Angel Investors are a group of investors just like venture capitalists except that they operate on a small scale. They are usually high-net-worth individuals who usually want a large portion of your company. It is one of the more popular forms of funding as it allows you keep a control over your business idea and earn mentorship when it is needed. Online platforms such as Gust and SBA are popular places to find Angel Investors.
Over ninety percent of startups today are self-funded. It is not possible for every business idea to get funding. In fact, a very less percentage actually gets noticed by the investors. In the end, most businesses are left to their own devices. Though it might take a little longer to save money for your startup, the advantage is that once you have enough money to invest, you don’t have to worry about losing control of your business or giving away a lot of equity. Your business is yours and yours alone.