Quick snippets from our morning read on Monday, 14th December 2020
As we begin a new week, we’d like to talk fundraising for startups, in this Forbes Article, Martin Zwilling shares the top 10 sources of funding for start-ups. We share 5 of the 10 sources.
I’ve found that entrepreneurs tend to fixate on one or two funding sources–often to their detriment. Better to keep all options on the table.
Top 10 Sources Of Funding For Start-ups
1. Bootstrapping.
Self-funding from your savings (if you have it) is always preferred. Advantages: no time going hat-in-hand to investors and you don’t have to relinquish any control in your company. For more on how to bootstrap, check out Bootstrap Business by Rich Christiansen, who has launched nearly 30 companies by that method.
2. Friends and family.
Tap your inner circle before expanding your horizons. As a rule of thumb, professional investors like to see real skin in the game–your own, of that of people who trust you.
5. Incubators.
A start-up incubator is a company, university or other organization that ponies up resources–laboratories, office space, consulting, cash, marketing–in exchange for equity in young companies when they are most vulnerable. (For more, check out “Getting The Most Out Of A Business Incubator.”)
7. Venture capital.
As a rule of thumb, don’t try this one in the earlier stages; in fact, don’t try it unless you need more than $1 million. VCs take their pound of flesh in equity and control. It’s not the most efficient route, either: Prepare to spend at least six months searching for and closing the deal. Start your search within your local network of entrepreneurs.
8. Bartering.
Exchanging goods or services as a substitute for cash can be a great way to run on a little wallet. Example: trading free office space by agreeing to be the property manager for the owner. This technique can also work with legal, accounting and engineering services. (For more, see “Nine Effective Bartering Techniques.”)
Read the full article here
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