Not call for seed capital hit. THE dbargain forever difficulty capital to maintain operations. It’s more difficult when start young, inexperienced contact capital from bank loans. Posts here will be wrongI answered all To ask questions for you.
What is crowdfunding?
Call for start-up capital
Crowdfunding is a form of fundraising help from the community to help the owner of a project or the person who designed a invention idea complete their projects or products when they have invention but Not yet To have money execute his project.
Imagine clear, When you only one invention About one solution or a project? brought advantage for the community but You have no capital, no collateral to borrow from the bank perform project, you to want meet people, explain idea, call on the financial support of the community to enable you to carry out your project. This form of fundraising is called crowdfunding.
This form of fundraising bring to very many utilities cho Startup. You can Service call for product launch And put the product there chance communicate direct with everyone in the community And THE people able to buy.
See more: Starting a business with little capital, so you should invest today
Steps to Raise Capital for a Successful Startup
Call for start-up capital
In the last period of a business development, business now established may need a bank loan for their needs different, include working capital & growth long term.
For ensure For this loan, the financial institutions will require several years of financial information on the two business & businessmen. They would like desire have guarantees for guaranteed Amount of the loan. Over time, the bank will become familiar with business your, And you can simple contact internal banking products or apply for loans when needed.
You have to only one invention idea GOOD!
Invention Be first step you need for a project start a business. Major SO, you have to only one invention GOOD, minimum beloved, friend Assess feasible. besidesfind yourself a like-minded person & the passion to work together & share difficulties.
Before starting a business, I researched And found that many models start All right form Sometimes just for personal satisfaction, Because of that maybe idea At first, it was very mythical, but if there were enough factors of “heavenly weather, geographical advantage, human harmony”, invention looks crazy there Again bring unexpected success for the thinker. If you A idea unique, different, do not hesitate share because there will definitely be someone interest with something there.
Angel investors are people To have money & ready to invest in business start a business. They will provide capital for expansion business. For guaranteed Financial sources angel investors, you have to prove it business maybe create high return on investment.
Capital raising through angel investment will be less risk that compare to Bank loan. Angel investments usually don’t require you to pay back just in case. business failure. Because Angel Investors Often Understand Growth Hacking & How it works of the company.
There are also reputable investors in the network of V-Space. And Even angel investors.
Friend GOOD & family
When you can’t get more funding, But business growth of you have to more capital, consider invite the family And friend invest in business your. In most cases, family or loved ones invest in you, not your work business your. Both parties should treat this investment as a non-binding grant.
Whether business success, rewards for those acceptance risk It would be a nice gesture (a thank you?). Just kidding, work till you die to pay your family debt & his relatives.
Capital from venture capital funds
venture capital business to use capital contributions from venture capitalists to inject capital into projects. Aim ensure effective investment, business Venture capital often has higher criteria, joined later And have a larger stake than angel investors.
DThis Be raison that the business Venture capital investment often needs to acquire rights control or influence certain decide the company.
For answer venture capitalist, business often have plan And sales form clear, as product growth potential.
It is last funding, where everyone can participate. It is form raise funds on the basis of public support or also called crowdfunding.
Fundraising for the business little
It is public funds are arrange to support technology projects, projects related to health, education, community… The best place to look for this type of investment is Grants.gov. This place has over 1000 federally funded programs without paying costs by equity.
Family funding friends
Generally, professional investors wish you get commitment from those sources because if the family & friends Are not trust you, no one outside can intervene to invest in you. It is The main source of capital is to motivate you to start your first business.
Open a loan application friends & the family usually does not simple. Butseek support from loved ones & friends Normally first step very good compare to find external funding.
See more: Unique and Creative Successful Startup Model for Startups
So when? start a business should raise capital?
Call for start-up capital
When to raise capital: when is it new? idea & achieve product/market fit (seed funds) or when business took shape & on the dynamics of growth (series A, series B, C…) thing there addicted potential funding And each specific business.
JWowinvestors are only willing to spend money when they are really answer, SOFounders should only raise capital when you can tell your own story. you have one idea hay, but there It’s just a drawing cake. You have to turn it transform feasible, looking for customers And potential market.
Investors will want to know if the product has Fit with the market, And Have ability real growth or not. SOif you desire To raise capital from an angel round, founders need to find the market potential And customer aim exploit.
See also: How to start a successful business with a specific strategy
Through the above article, I have shared with you the steps call for seed capital hit. I hope the article will bring you a lot of useful information. Thanks for following this post!
Vu Thom – Synthesis & editing
Reference sources: (way.com.vn, danang.gov.vn, …)