Startups

Startup Funding: Top Tips on How to Secure Funding... from a Startup

Running a startup is exciting, but can be tough- especially because it usually requires funding for the longevity of ...


Startup meeting

Running a startup is exciting, but can be tough- especially because it usually requires funding for the longevity of your business. And it is not always easy obtaining the necessary funds that are required to sustain a start up.
 
As a startup ourselves, we know that first-hand, so here are our top tips on how to secure funding for your start-up: 
 
-Crowdfunding 
-Angel Investors
- Loan 
- Competitions  
- Grants 
- Venture Capital 
- Faultfixers is raising a seed round- Learn more 
 
Crowdfunding
 
Crowdfunding is when a business receives donations from a large pool of people, often via the internet. Start-ups might opt for this option as it is a low risk alternative, and also allows a business to get the word out about their product. 
 
Not only that, it gives your business the opportunity to gain valuable feedback on your product, and in the long run it can be used as an example of marketplace adoption to future investors. 
 
Since there are a different types of crowdfunding, such as rewards or equity-based crowdfunding, you will have to decide which one is most suitable for your startup. 
 
Angel Investors
 
Angel, or Seed investing is when affluent individuals invest their own capital into startup companies during early stages of development, and in exchange they receive an ownership stake. The amount of investment a startup can receive varies from the seed stage up to one million. Additionally, it isn't unusual for more than one angel is involved in a funding round.  

 Is Angel investment for you? Angels, like VC, may seek control over aspects of your start-up and commonly expect a quick return on their investment.
 
Nonetheless, if you find that an angel investor is suitable for your startup, it is a good idea to allocate an investor who has knowledge and industry experience in your startup space.
 
Loan
 
A loan is a sum of money that is borrowed, and paid back with interest. You can apply for loan via the bank, 
 

You can apply for a bank loan or use peer to peer lending. Peer to peer lending platforms can be a cheaper substitute to a bank loan, if you have good credit. 

Competitions
 
Entering a competitions can be a great way to earn funding for your start-up, as it is low- risk, can spur innovation and allows you to network with like-minded individuals. 

Grants
 
If you are unsure whether you want to give up equity, securing a grant  could be just right for your startup. A grant is a is a sum of money awarded to a business to help it grow and develop, usually by the government or another company. The greatest perk of a grant is that you do not need to be repay the sum back.  
 
Venture Capital
 
Venture capital is when a venture capitalist buys a stake in a business with high growth potential, in exchange for equity. Venture capitalist commonly will invest at least one million for high-growth startups- that's why this is Faultfixers funding method of choice.
 
What's the difference between venture capital and angel investment?
 

Venture capital investors are employed by a risk capital company, where they invest other people's money.

While angel investors use their own money to invest in businesses. 

FaultFixers is raising a Seed round off the back of an AMAZING last 12 months 🤩
Get in touch if you'd like to find out more - tom@faultfixers.com

 

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