Funding a startup business project is always easier said than done. Startups are typically newly created business projects undergoing development and conducting market research. In essence, there are businesses that do not have the advantage of proven track record in operation and income generating power. This is the reason why project creators need to be more creative and innovative in terms of coming up with the required funding to make a go of it.
Funding Platforms
The online environment has really made everything possible including soliciting funds for worthwhile projects that will not otherwise have the chance to come to fruition. There are several options but there are requirements that need to be provided by the creator to be included in a funding platform such as Kickstarter. Kickstarter basically brings together the product developer and the financial backer.
Being funded under the Kickstarter platform provides opportunities beyond funding. Successfully completed projects enjoy the advantage of being branded as a Kickstarter product and therefore have access to related services. There are stores that specifically focus on promoting Kickstarter products such as the ForeverGeek Kickstarter Store. This online store does not exactly sell the products but instead directs people who are interested to buy Kickstarter products to the creator’s page.
Angel Investors
Obtaining funds from rich people or so-called angel investors has been in the scene for quite a while. However, because of the great number of project creators looking for financial backing for their proposals, a certain degree of innovation is required to stand out from the rest. It has to be remembered that most startup project proposals never get the funding they need.
What makes one proposal stand out? Usually, it is the uniqueness and practicality of the project itself. Those that usually succeed in getting their desired funding are better variations of things and ideas that are already in use. This is because the need for the product has been established and having a better version of it is always a welcome development.
Seed Funding Firms
What makes sense in approaching seed funding firms is the fact that they have the money to lend and invest. These firms usually provide funding at the earliest stage of development thus the term seed funding. They may or may not follow through with additional investment towards the latter part. Entering into an agreement with these firms come with standard restrictions.
Originally posted on November 26, 2013 @ 10:06 am