Once a business plan is in place, the next step is raising capital - money or goods used to operate and develop a business - in order to see that idea grow into fruition.
Companies are encouraged to begin raising capital early, since securing funds for a new business can often be a lengthy process. When figuring out how much money to raise, companies will often consider the basics needed to get off the ground, but should ask investors for more than that, leaving leeway for factors and expenses that were forgotten or unexpected.
Next, entrepreneurs have to decide where to get capital. Grants can take up to a year to get awarded, while bank and small business loans have a faster turnaround (2 to 3 months). However, both are increasingly harder to secure these days in a depressed American economy. As a result, many entrepreneurs and new businesses have turned to the idea of finding angel investors.
Angel investors, or wealthy individuals who provide their own funds and expertise, are another source of start-up capital, which has gained in popularity over the past decade.
Angel investment does have its pros and cons though, as while they are usually willing to take high risks, the amount of money is generally lower, whereas venture capitalists or a pool of investors that take shares in the company, will invest greater amounts but usually only after the company has proven growth.
US$1,000,000 Req US$50,000 Min
Imagine never having to worry about the spread of cancer. Metastases a condition of the past.
US$2,000,000 Req US$25,000 Min
"Bringing Click & Order to Brick & Mortar". The first in-store app designed for specialty retailers. Proof of concept is complete with a major brand, RVCA joining the Exchange
US$1,500,000 Req US$25,000 Min
Successful matchmaking company in San Diego raising capital to expand nationally. We have a scalable model with good margins and a strong team in place.
US$5,000,000 Req US$10,000 Min
Globally patented education technology poised to capture a significant share of $5 Trillion Ed Tech market by revolutionizing youth financial and entrepreneurship education.
US$1,000,000 Req US$1,000 Min
Be a part of the next big idea in the quick serve restaurant industry.
US$5,000,000 Req US$1,000,000 Min
Voted #1 Pizza in Phoenix with a successful concept that in 2016 saw roughly $12mm in sales in its third year of existence and projected to reach $50mm in by 2020