Startup Business - Funding Alternatives to Venture Capital

Often the media is the best source of capital for a start-up companies to venture financing. That is why many people believe, the venture is the only source of financing for start-up capital. Not only that this is not true, but often in the early stages, an investment of a venture capital company means a great loss of equity. There are a considerable number of other sources of financing which may call early on businesses, especially if the company in the high-tech arena.

If youThis basic or pre-product research, take the time to submit for grants. Although this is time consuming and certainly not the quickest way to obtain money to have the government and other funding agencies do not want ownership in your company. A six-month Phase I SBIR grant for 100,000 U.S. dollars, followed by a significantly higher subsidy for Phase II, from $ 500,000 to $ 750,000. When you apply for and win two of these scholarships, you can get a good start to finance your business.

If yourCompany needs a small infusion of cash, you can get an SBA loan, or if you have a good relationship with your bank for a loan. In addition, a bank will lend against your claims if your customers are reliable. Many people are afraid to tap into sources of debt, because they do not want to be charged to the debt if the company fails. If you do not believe in the company enough to your own credit behind this place, why should anyone else.

If you have less than$ 1 million, tap into a local network Angels. If you do not know any rich people who find them. If you do not raise $ 1 million in angel investment, you may not be your idea as good as you think ... or you may not be the right person to sell it. Get help from local development agencies, groups, or SCORE technology incubators. These people are all committed to the fund raising network in the state.

Consider, finance jobs for your product development. If you have the right equipmentor those small jobs that use part-time basis to handle, this revenue as a funding source. Use creative ways to keep your costs low. Join a business incubator to take advantage of the services offered by them at a lower price. Barter has received another good option, the use of space or equipment that would be too expensive.

Part of being an entrepreneur is to be creative. Use creativity in the financing of your business and save the capital for the development stages.

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