5 Tips for Raising Startup Funds

raising starup funds

Over the years I’ve served on the board of a number of startup’s. They all have a few commonalities:

  • There leadership skills are more deficient than they will allow themselves to admit.
  • They tend to overate their own abilities
  • They underestimate the abilities of others by attempting to do too much.
  • And lastly, they often misuse hard earned funding.

This failure is often displayed to the public and employees as bad timing or poor market conditions

In every instance the companies could have been saved had they engaged better leadership For those who have an engaged board of advisors here are a few tips on start-up funding by Drew Hendricks in Inc. Admittedly, nothing in the article is new. The benefits you are reminded.

Here is a list of 5 sources of funding that are proven to be the most reliable ways to raise money for a startup.

1. Crowdfunding

Even though crowdfunding is a relatively new way to raise money for a startup, its popularity is on the rise. When crowdfunding you’re literally soliciting funds from a crowd of people.

To get started with crowd funding, you have to first present an idea that you want to receive funding for. From there, people can choose how much they want to give towards that project.

What’s in it for the people funding the project? Most crowdfunding sites operate on a reward base model. Those who invest their money into a project are given rewards that go up in value according to how much money is invested.

Some of the most well-known crowdfunding sites include Kickstarter, Indiegogo, and Fundable.

2. Angel Investing

Angel investors are best described as entrepreneurs looking to invest the money they’ve made back into startups. Some of the largest companies in the world received their first round of funding by angel investors. Including Google, Facebook, Skype and Twitter among others.[…]

Read full article via 5 Clever Ideas To Raise Funds | Inc.com.

About

Jim Woods is president of The Jim Woods Group. A management consulting firm. Go here to see his work www.jimwoodsgroup.com. He advises and speaks to organizations large and small on how to increase top line growth in times of uncertainty and complexity. Some of his speaking and consulting clients include: U.S. Army, MITRE Corporation, Pitney Bowes, Whirlpool, and 3M. See more at his website www.jimwoodsgroup.com.

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