Published on April 1st, 2013 | by Jose Vasquez0
5 Easy Ways to Get Funding for Startup Tech Companies
Securing funding rarely happens immediately, but these five easy ways to get funding make the process simple and can get your startup tech company up and running faster.
Maybe you’ve already got a solid idea, and a tangible business plan to introduce your startup tech company to the market. Planning and brainstorming are important, but when it comes time to execute you’re going to need startup capital to fund your efforts.
Getting the money you need to start and grow your business can seem daunting, especially for first-time entrepreneurs. Startup tech companies are often small operations, but unless you have an immediate source of steady income, you need to find at least one major source of capital to get your operation up and running smoothly.
These relatively easy ways of getting startup money have been used by thousands of successful entrepreneurs, and are options for anyone with enough dedication:
- Government Grants. Government grants are available at federal, state, and local levels, and with a little time and patience you can secure yourself a decent amount of cash to use for your tech startup. Just be aware that many government grants do have several strict requirements attached.
- Angel Investing. Angel investors are wealthy individuals looking to offer resources in exchange for a stake in the company. Angel groups are found in communities all over the United States, and many have a very specific niche.
- Crowdfunding. Crowdfunding is an emerging trend that pools capital from dozens or hundreds of small individual investors. Websites like Kickstarter and IndieGoGo are perfect for this, but to be successful you’ll need to offer incentives to your investors.
- Bank Loans. Bank loans are another common way to raise capital for a business, but be prepared for a close inspection. Without a solid financial background and a clear action plan, you risk rejection.
- Competitions. While somewhat less stable than other funding options, there are several contests available for entrepreneurs. Submit your idea or business plan to an accredited program, and go after the top cash prize!
Follow multiple paths to maximize the amount of money you receive, and try not to be discouraged if things don’t work out right away. It takes time and patience to secure funding for your startup tech company, so learn from your rejections and keep moving forward.