Many people dream of becoming entrepreneurs, and often the biggest...
Letting technology do the heavy lifting for certain monotonous tasks...
Tax season often triggers stress and complexity—especially for...
The halfway mark of any given year is...
September 3, 2020
Whether you have been running a business for quite some time or you’re just setting up your company, you’re bound to run into situations where you’ll need to raise money. Venture capital is considered to be the most popular form of fundraising by many entrepreneurs, because in addition to money, it provides you with industry connections, an abundance of knowledge and a clear direction for a business. However, venture capitalists may not always be inclined to help small business owners.
If you are looking to secure funding for your startup but you aren’t seeking VC money, here are nine alternatives to venture capital funding.
: Angel investors are typically wealthy individuals who have an interest in helping startup owners get their businesses off the ground. While some may take a stake in your company, others prefer a return on their investment.
: Crowdfunding platforms such as Kickstarter and Indiegogo allow businesses to pool small investments from a diverse range of investors instead of seeking out investment from a single source. This method of raising funds can give a financial boost to startups.
: Many government agencies — federal, state or local — are committed to helping small businesses succeed. One such agency is The U.S. Small Business Administration (SBA) that supports America’s small businesses by connecting them with lenders and grant sources to help them plan, start and grow their businesses. The SBA also offers counseling and contracting expertise to small business owners.
: Business credit cards allow entrepreneurs to make business-related purchases using credit. However, these cards tend to have higher limits — in addition to higher interest rates — and they may also lack the consumer protections enforced by the Credit CARD Act of 2009.
: Invoice financing, also known as factoring, is a way for companies to borrow money against their outstanding accounts receivables. It helps them improve cash flow, pay their staff and suppliers, and reinvest in operations and growth, without waiting for their customers to pay their balances in full.
: Also, known as marketplace lending, peer-to-peer (P2P) lending allows businesses to obtain loans directly from other individuals through various websites, thereby cutting out the financial institutions as the middlemen. Lending Club, Peerform and Prosper are some of the most notable P2P lending platforms in the U.S.
: Bootstrapping is the process of building a business from the ground up using personal savings in addition to the money coming in from the first few sales. It allows entrepreneurs to maintain total control over all business-related decisions.
: This method of raising funds works somewhat like credit cards. Lending companies provide a maximum line of credit, which can be used to pay for short-term expenses such as expanding inventory, purchasing equipment and covering operating costs, among other expenses. Interest is charged only on the money that’s withdrawn.
: Convertible debt is when a company borrows money from an investor or a group of investors, with a collective agreement in place to convert the debt to equity in the future.
Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.
Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.
Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.
Tax season often triggers stress and complexity—especially for startups laser-focused on building products, acquiring customers, and scaling operations. Yet savvy...
The halfway mark of any given year is more than just a date on the calendar; it’s a valuable checkpoint...
For consumer goods companies, managing inventory efficiently is critical—not just for operations but also for financial health and risk management....
As more businesses transition to Software-as-a-Service (SaaS) solutions, data security and regulatory compliance have become top priorities. From handling sensitive...
For portfolio companies, whether backed by private equity, venture capital, or family offices, scalability is essential for maximizing value and...
Insights from a Consumer Goods Expert: Building Brands, Inventory Management, and the Power of Outsourcing In a recent conversation with...
Private equity deals are becoming larger and more complex, making financial preparation a critical part of the process. Take Novartis’s...
Biotech startups operate in a unique financial landscape, where securing grants, venture capital, and government funding is crucial for driving...
As the world leans into the decentralized era, Web3 startups are at the forefront, exploring the possibilities of blockchain, cryptocurrencies,...