Quick Startup Financing Options

January 19, 2015

7:38 pm

Creating a startup company is the best way for people to make money out of their ideas and creations. Coming up with an idea might be fairly easy, but maintenance and sustainability are not – especially in terms of financing.

Ideas have value, especially if they are good. Anyone having an idea that has breakthrough potential or can be game-changing in its niche, then it will most likely attract a generous amount of investment, which can be vital in the company’s early stages. We have all heard about stories like this: companies that get massive investments just for an idea that, actually, has never been put to practice, but has the aforementioned potential.

Other companies are establishing themselves with little or no investment whatsoever but, at some point, they prove to be valuable and useful. In situations like this, it is often common for bigger companies to invest in them by buying or “absorbing” them, getting a close hang on its further development and getting most of its revenue.

Another alternative is resorting to private financing. The fact that the bank sector is not exactly rock-solid at the time and all the interest rates and everything else coming along, probably makes it not the best option. Most likely, a better option is to resort to services like the one offered by Behalf, in which companies get a specific cash amount to spend in things like supplies and equipment, with Behalf paying it for them. Then, companies repay Behalf in a fashion that best suits them – something that would be impossible with traditional financing by banks.

A third (and growing in popularity) option is crowdfunding, a fairly new but powerful financing tool that is responsible for many startups to thrive and head for a steady development. Crowdfunding is, as the name suggests, funding given by a community.

There are many ways to crowdfund your idea or your business, with the most popular being the dedicated platforms like Kickstarter and Indiegogo. In them, each crowdfunding project has a given goal to be achieved in a given time frame. These platforms have various levels of transparency and guarantees, so care should be taken to make sure that their processes fit your intention.

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25 y/o, born and living in Portugal. Majored in Biology, but tech and computers were always a passion. Wrote for sites like Windows.Appstorm and MakeTechEasier.

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