How to Fund Your Startup Business

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Crowdfunding 

If you’ve got a great idea for a business and you’re serious about getting it off the ground one excellent way of funding it is through Crowdfunding. Crowdfunding is one of the best ways to fund your business because you don’t have to pay back the money. Those who invest in you are interested in your end product. 

To get started with crowdfunding visit websites like Kickstarter, Indiegogo, and Patreon. These are crowdfunding platforms that allow you to pitch your business idea to an audience. This audience will decide if they want to invest in you and you can start building your business or promotional products.

Angel Investors 

Angel investors are people and firms that invest in startup businesses at the ‘seed funding’ stage. They are called Angel Investors because there is a high risk of the business failing and them losing their capital. But if you can find them and they have confidence in you or your business strategy, it can be an excellent source.

To find angel investors you will have to take to the right people and visit the right places. Go to your network and ask questions, investigate access to Angel Investors, and send a strong pitch to them. You might find them through your own network, through social media sites, or at startup business events.

VC Firms

Venture Capital firms are often one of the best ways for startup businesses to get the funding they need. A VC firm is a limited partnership or a limited liability company that searches for a startup business to invest in. They often have a pool of investors and are looking for startups that offer growth and equity. 

If you have confidence in your startup business, a strong business model, and a way with words, you might be the perfect candidate for some VC investment. You can seek out VC companies through their websites and send them a pitch, or talk to them at startup events. You might get the opportunity to pitch to sharks in a tank. 

Startup Incubators 

This source of investment is a little left field, startup incubators normally aren’t looking for equity, what they do is offer a period of support for the small business, usually three to twelve months. They can provide office space, mentorship, and access to angel investors. Incubators will ready your business for accelerator programs. 

Not all incubators are alike, however. While most don’t require an equity or long term commitments, some do and may ask for a stake in the business. Watch out for this when investigating your funding sources and use your best judgment. 

Startup Accelerators

Like incubators, accelerators are mainly mentorship based and will rarely ask for a stake in the business. If you have a minimal viable product that is already on the market you may not need an accelerator, moreover, you will require an MVP to get onto an accelerator program. That said, these programs offer excellent industry knowledge from experienced professionals in the form of seminars. 

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