In starting any business or startup you need a lot of liquidity and cash flows for setting up office,employees and hiring technologies.But the question is in this time of recessions where to get the money?
The things which comes into my mind while thinking of funds and loans are:
Here is the list of few points where we can search for Startup Funds:
- U.S. Government Grants. There are thousands of grants available for specific types of research. You’ll need to research and find out, but you can find a comprehensive list of grants at http://aspe.os.dhhs.gov/cfda/. The Foundation Center, http://fdncenter.org/
- Friends and family. It is well known that when ever you are in need of money your will first search for your best friends and other family members.
- Venture Capital. In short Venture Capitalists (VC) is a person or investment firm that makes venture investments, and these venture capitalists are expected to bring managerial and technical expertise as well as capital to their investments.Venture Capitalists look for highly profitable, very fast growing, early to mid-stage ventures. They seek almost immediate returns on their money, which often include funds from wealthy individuals and institutional investors (i.e., pension funds) looking for a high rate of return.
- Angel (Personal) Investors. An Angel Investor is an affluent individual who provides capital for a business start-up, usually in exchange for ownership equity. Their motivation to invest is typically a blend of desire to earn a return on their funds combined with a willingness to contribute their expertise to building a new business and a sense of giving back to their community. You MUST have your research and business plan done before you approach them. Typical investments stay in the five figure range.
- Bank Loans. Frankly, bank loans are tough for startups to acquire. Usually banks loan money to companies that are stable and profitable or whose officers have a successful business background. They’re not impossible, however. Make sure you have your business plan in order before approaching your banker.
- Savings and investments. Depending on how much you’re looking at, you may be able to pull the amount from savings, CDs, stocks, or bonds
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