Startups need to purchase equipment, rent offices, hire staff and grow rapidly in order to stay on top of the game. Below are the basics of raising capital to get their company off the ground that every startup founder should know.
Raising outside capital. In almost every case, startups need to raise outside capital since the amount of money needed to take a startup to profitability is usually well beyond the financial ability of founders and their friends and family. Usually, high growth companies need to burn a lot of capital to sustain their growth prior to achieving profitability, hire experts, and better service providers or expand. At the same time, funding is a competitive advantage: belief in the concept, partnerships, and marketing. The good news is that there are a lot of investors today looking for startups to fund. The bad news is that fundraising is a long, complex, and hard process. Keep reading this post
More and more women start their own businesses, and researchers are starting to point out that the reduced gender inequality will increase GDP and female-led companies get higher growth and valuation. Here are some interesting facts that you might not have expected to learn. Keep reading this post
Starting a company without business experience: some of the most successful founders started their entrepreneurial journeys without any prior business experience. Having a business background isn’t the core of the entrepreneurial success, it can be acquired through great teammates and advisors, and learned over time. What is important in starting a company is having a unique insight into an industry, or a core competence that others don’t have, passion for the product or service, intense motivation, perseverance and vision.
Find a co-founder with complementary skills: you need to share vision, responsibilities and excitement for the company. Identifying strong skills and finding ways to work synchronized is the key. Keep reading this post
Angels are usually wealthy individuals, former executives, or entrepreneurs themselves who desire to work with smart startup teams. They rely heavily on their instincts, industry experience, and connections when investing in new businesses. Angel investors usually invest because they believe in your idea and that you are the right person to make it reality, so when talking to potential angels, be prepared to discuss your background, expertise and show passion for the project.
Where to find angels:
- It is smart to reach out to your network and get a warm introduction – people close to you might be excited about investing in your future, and are a good source of recommendations for other potential investors. Keep reading this post