Every startup needs access to capital, whether for funding product development, for initial rollout efforts, acquiring inventory, or paying that first employee. Most entrepreneurs think first of bank loans as the primary source of money, only to find out that banks are really the least likely benefactors for startups. Thus "creative" really means maximizing non-bank financing.
If you're part of an accelerator or startup, the SEC just granted you a new way to approach funding in 2014: the right to solicit a broader range of investors.
Time is too precious to waste trying to close a deal with the wrong investors at the wrong time. Luckily, not all investors are looking for the same thing, so it pays to know what type of investors are most interested in what your startup brings to the table.
When meeting with investors, during the period devoted to feedback after your presentation, you will hear comments and recommendations that don't resonate with you.
As an Angel investor to startups, I'm still surprised to find entrepreneurs who expect investors to give them money, and then disappear into the sunset. Would you do that if it was your money?
Finding loans to start a business can be time consuming and costly if you are not careful. While it does not usually actually cost anything to apply for a loan moneywise, it does cost time, and time is money.
Recently, the St. Louis Business Journal described 2013 as the year "St. Louis tech took the money and ran," profiling just how much money our city's tech startups raised last year. The number is pretty impressive: $56M+ from just our top five startups.
I'm seeing more and more marketing showing up about so-called crowd funding these days. Sorry, but no. Not yet. Reports of crowdfunding in the U.S. are, as of today, just wishful thinking.
Even when your startup is a one-man show and lots of fun, a "business" needs some discipline and controls to keep it from being defined as a hobby by investors, and assure some financial return.
While it's true that most new companies require some degree of startup capital to help get them off the ground, many businesses are surprisingly cheap to open. There are several ways to keep initial costs low when starting a business.