The twothings which are of crucial importance when it comes to a successful tech startup are;anintriguingidea and a good investment. Of the two, landing an investment istougher. Consider thatyou have a perfect tech startup plan but you lack necessary funds, then you won’t be able to realize yourtech dream into a reality. Therefore, you need to be on your toes during the process of pitching investors because one small mistake couldtake you back to where you started from.
Funding is extremely important when it comes to product development and marketing drills. Without proper revenues, at your exposure, you’llwant to be able to make an impression on the rapidly shifting technological world. With the help of adequate funds, the journey of gettinginto the limelight becomes a lot easier.
There are many ways with which you can generate enough funds for your technological startup. The best and the easiest one involvesusing your own money, if you have that much at your exposure. Otherwise,pitchinginvestors orseeking bank loans arepossible options as well. Brief details of these ways are discussed below:
As we have already said, the best way to generate money for your startup is to fund it yourself. With this, you won’t need to present any initial proposal to anyone nor would you need to keep anyone updated about the growth of the process on a regular basis.
By funding yourself, we mean that using your individual money or getting it from people around you, who won’t deal with you the way corporate lenders will.
- Your Own Money:A tech startup requires a lot of time when it comes to planning. During the project planning tenure;cut your extra expenses and save as much as you can. Be sure to pay off any Nevada title loan as well. The saved money can be used to fuel the progress of your startup.
- Use Credit Cards: Another great way to generate funds for your tech startup is using your credit cards. For this, you’ll need to have an improved creditworthiness among the credit lenders. What you need to do is reduce your credit balance and maintain a regular use of your credit card for some time. This will help you develop a good credit history. As a result, getting a handsome amount of credit from lenders will become easy.
- Ask Family or Friends: If you don’t have enough money on your own and you don’t want to pitch a lender then asking your family and friends for the money is a great idea as well. This might not be as easy as it sounds. You will need to convince them with your tech plan.
Approaching investors todiscuss your business plan is a reliable way to get your tech startups funded. All you need to do find potential investorswho you think might be interested in your idea. It is a technical process and you need to well-prepared. If anything goes wrong you will get your investment cancelled. Rejection from multiple investors will reduce the market competency of your project.
There are certain types of investments which you can get in the corporate world. Some of them are discussed below:
- Venture Capitalist: There are multiple investment companies which offer funds to business startups. You can reach one and discuss your startup idea. If you’re able to convince them then you will be able to get your hands on a good sum of money for the fulfilment of your project.
- Angel Investors: Angel investors are rich individuals who can help you with your startup with their money. This funding is done against ownership of the startup equity or in exchange for convertible debt.
- Seed Funding: As the name signifies, seed funding is an initial (small) amount of money provided to you by an individual investor. The borrower needs to offer asignificant ratio of startup shares to the lenders in this situation.
- Bank Loans: Banks offer startup loans to those who come up with intriguing ideas. If you think your plan has a promise then take it to the loan department of your bank. Show them the plan and instead of wondering how to get a payday loan, get a bank loan.
- Ask a Potential Customer:You can ask a potential customer for the payment of some amount in advance. Use this money for the completion of your startup project and compensate it in the later dealings.
Getting a loan from investors isn’t an easy task! There are multiple things which you need to be prepared for while approaching an investor.
- Credentials: Talk about your past successes to increase your credibility in the eyes of an investor
- Presentation: Prepare a catchy presentation about the project
- Target Market: Tell them about your target market and potential customers
- Competition: Discuss the possible competition in the market as well
- Strategy:Make your strategy clear about the progress of the project
- Revenue Model:Investors care only about one thing, i.e. profit generation. Tell them about your revenue model. Discuss the sum you require and project the optimum profits you will provide them afterwards.
Use a Crowdfunding Technique
A rather new but interesting way of gathering money for your tech startup is using crowdfunding techniques. In this process, you need to explain your project to the general audience over the internet and the interested people will donate money for your startup.
You can hop on to multiple online platforms and engage people in your startup. On these websites, you will be required to provide detailed information about your project and the amount of money you need for its realization. People liking your project are likely to put their money in it. As a result, you will be able to landanadequate amount of money very fast. A thing worthmentioninghere is that it doesn’t work for everyone. Not all who take on crowdfunding endeavors succeed. Therefore, you can’t rely solely on this way of generating funds.
These are some of the ways with which you can generate ahandsome sum of money for your tech startup.