Starting a business is exciting but also a bit challenging, especially when you don’t have all of the startup funds for it. If you don’t have all the start-up funds just yet, there are ways to allocate for it with the use of the Internet.
But where in the online world can you find capital for your start-up? Read on to find out!
- Venture Funds
You can find venture funds online and pitch your startup to them, with places like Clean Venture Fund having online platforms to easily contact.
Venture capitalists are more for expanding businesses though, with capitalists using investor money. While they can still help startups, they usually go for businesses after they have been established with a good management team and high chances of success.
This can also be done through equity crowdfunding, where investors will take a form of ownership in the company through shares. While the original investment won’t be paid back, they receive a share of profits. This is also known as an angel investor, which can be found online.
- Crowdfunding Platforms
You can utilize online crowdfunding platforms, which allow startups and individuals to gain funds online. Websites are specializing in specific kinds of funding needed, such as:
- Reward-based crowdfunding is a platform where people are asked for small amounts of money in exchange for some form of reward from the startup.
- Donation-based crowdfunding is where the money that was contributed won’t be expected back.
- There are other types of crowdfunding, such as peer-to-peer lending and equity crowdfunding, which we’ll tackle in different sections.
- Online Lending Platforms
Because of the restrictions involved when getting bank loans for startups, there are new solutions thanks to the online world. There are now online lending platforms that serve similar functions as financial institutions.
It can be through the two methods mentioned above, peer-to-peer platforms, or loan companies that offer loans for a certain interest rate. Some of the online loaning companies may have fewer requirements and restrictions, but slightly higher interest rates, though. Make sure you select credible ones with fair interest rates that suit you, your budget, and the expected business growth.
- Find Programs Online
The power of the Internet is vast, you wouldn’t even need to step out of the house to search for available government programs to find capital.
A quick Google search will show you the different websites that list down financial institutions you can reach out to online. Shoot them an email and find out what requirements you’ll need to submit.
Government websites, whether local or international, will also list down the available government programs that can help small businesses. They also list down the requirements you need to submit and criteria to let you know if you are a candidate for specific programs.
Wrapping It Up
Take advantage of the Internet for your startup and use any of the methods above to find capital to pursue your journey towards business and success.