There are options to raise money that doesn’t involve having lunch with every investor who will take a meeting with you. Here are some ways to fund your startup without having to give away your equity.
It is a great way build a customer base and get the money you need for your business by giving away bonuses rather than pieces of the equity pie.
The downside is that it actually takes a lot of work to be successful at crowdfunding.
Grants give you money to start your business without strings attached. Often all you are expected to do is succeed, and perhaps provide an update from time to time.
Friends and Family
When taking money from friends and family, be clear about whether the money is a loan or for equity. Get everything in writing and set up a plan to repay the money (if it is a loan).
Communication is key to avoiding misunderstandings, protecting the relationship and making it a fruitful endeavor for all involved.
Small Business Loans
There are all sorts of different small business financing options available to you. If your business is still in seed stage, you’ll need to seek out lenders that are willing to help early-stage entrepreneurs.
When trying to secure funding for your business, there are many challenging decisions to make, and what type of financing to use is certainly one of them.
Giving up equity to fund your startup too early and too low can come back to haunt your business in the future. Be sure to explore as many funding options available to you.