Quick Ways To Fund Your Startup
Quick Ways to Fund Your Startup
Your startup is your dream come true. Your product finally saw the light of the day after years of devotion, dedication, and determination. It is indeed a moment of euphoria and you feel obliged to join the bandwagon.
However, the core idea behind starting a business is to scale up and raise funding in the near future. Funding is often considered a tough chapter in entrepreneurial books. Here in this article, we have strived to lessen your funding pressures.
Here’s the lowdown:
Focus on Your Business Plan
Business Plan constitutes the basic ingredient of your business. A suitable and concrete business plan would increase the chances of your getting funded. Let’s get to the ground reality. VCs and investors would really not consider you serious enough if you don’t have a business plan. Technically speaking, the most important part of the business is the financials. If your financials are in place, generating funding would be a child’s play.
VC firms are safe options for an early startup. VCs normally invest in the early stages of your firm, demanding an equity share. The VC business rule is generating 5x from X. VC firms are unlikely to wait for 25 years to generate profit.
Also, a lot depends on the genre you are operating from. For instance, if you specialise in running a burger joint, chances are few that you would attract any VCs attention.
Crowdfunding has been one of the most popular platforms now. Let’s consider a recent example. In 2012, a company called Oculus Rift launched a campaign on ‘Kickstarter’ to raise a funding of $250,000. The company was into manufacturing VR headsets.
They raised $2.4 million dollars, which was much more than expected. Two years later, Facebook bought Oculus for about $2 billion.
Starting your business is exciting indeed. But, it doesn’t happen at the drop of a hat. The initial days of starting up are supposedly going to be tough. However, once you take the route of seeking help from crowdfunding platforms and VCs, things would be easy to deal with.
So, get started today!