Author: matan
HOW TO RAISE MONEY FOR YOUR STARTUP
How to raise money for your startup – we all know that the main requirement for any business startup takes off and prosper is the arrangement of capital.
Without sufficient money or capital, startups are destined
to face challenges and obstacles which may lead to the failure of the venture.
Thankfully, there are many avenues open to raise money for your startup and succeed in your venture.
Why and How to raise money for your startup through Angel Investors?
Angel investors are people who know the startup business very well.
Either they have themselves at some point in their life raised money for their startup,
or they are people with a lot of disposable capital and are willing to invest
in high-risk ideas for a higher return on investment.
Anyone who wants to know how to raise funds for their startup should
approach them as they provide constructive mentorship.
The only drawback being they individually provide relatively low capital investments.
Why and how to raise money for your startup through Venture Capitalists?
Venture capital funds are professionally managed by experts who actively seek out startups.
They are not interested in equity and invest to grow the startup,
and ultimately sell their stake at a considerable profit once the business takes off.
The other more important answer to the burning question how to raise money for your startup
is the level of mentorship and expertise they bring to the new business along with the funds.
The only disadvantage is that they tend to take a major share of the business and control most of the decision making.
Why and how to raise money for your startup through Crowdfunding?
By far the best option for s startup is Crowdfunding.
But one asking how to raise money for your startup must have the following two components in place:
A solid business idea or product, and expertise in exploiting social media platforms.
Crowdfunding works when an individual makes an idea, business, or product pitch
and shares his business model on social funding platforms.
If the crowd funders like the idea or product they pledge funds in return to be the first in line to receive the new product.
The advantage of being the startup does not have to hand
over shares or control to any other person or organization.
The drawback is that it can be a very competitive environment
and not everyone gets the minimum funds they require to fund their startup.
