Although a great business idea and a well-knit team are must-haves for your startup, you really can’t expect it to get off the ground without adequate funding. As fundraising is a common struggle for lots of tech entrepreneurs getting proper advice might be essential to your venture’s success. Below you’ll find some useful tips for when starting to raise capital for your startup idea.
While preparing your startup funding plan you should at least consider self-funding your startup – nowadays the costs of starting a business are at an all-time low and the great majority of startups are self-funded (or, in other words, bootstrapped).
Starting with a money raised from a loan or a grant creates the advantage of having a total control over your own business, but this usually takes a bit longer to grow. If you don’t want to wait and lose time, you could start by preparing a detailed business plan and then trying to secure external funding.
Startup Incubators and Accelerators
These are a quite popular kind of organization right now, and are sometimes associated with major universities, governmental development agencies or even large private companies. They are keen to provide free resources to help you kick off your startup, but sometimes they also offer some financial support to spend on seed funding. Below you’ll find summary of this year’s largest startups incubators :
12 Best Startup Incubators and Accelerators in 2017
7 Incubators That Can Help Your Startup
Venture Capitals/ Angel Investors
There are some venture capital companies, that invest institutional money in promising startups with proven business model, preferably ready to scale. In most of big urban areas you’ll find Angel Investors – high-net-worth people, who might be willing to support your startup idea if you present it well.
To find a partner interested in your idea you’ll probably have to contact at least 100 names. The most efficient way to find and contact them is to familiarize yourself with tools such as AngelList, Foundersuite, Crunchbase or Gust, that will enable you to build an initial list to enable you to contact both individuals and companies directly.
Sometimes you may have the chance to present your product in front of potential investors during startup industry events, so you’d better keep an eye on what’s currently happening in your area (and if your area happens to be Switzerland, take a look at the list of Swiss startup events you should attend up the end of 2017).
When it comes to startup events we have to mention networking, the only method you cannot leave out. To meet potential partners, learn from more experienced entrepreneurs and acquisite fresh blood for your team you simply have to network, either on LinkedIn, local startup organizations or industry events.
Crowdfunding has become extremely popular, providing new source of startup funding for entrepreneurs. Sites like Kickstarter provide the perfect platform for not only collecting the money, but also sharing your idea via pre-launch marketing. Users make donations, and sometimes by making online pledges they can benefit from getting onto a pre-sales list.