Finding Balance Between Unconventional Tech Funding Routes

Posted by CateCosta under Raising Capital
From http://thenextweb.com 3784 days ago

Many young entrepreneurs are programmed to think that getting an enormous payday from a VC is the only way to move their startup forward, and they choose to focus on the dollar signs instead of building a company that can last and thrive within its means.

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Comments

Written by tiroberts
3777 days ago

This is a different topic that I don't see discussed often. Thanks for taking the time to address is and share your perspective with us.

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Written by CateCosta
3777 days ago

You're welcome for sharing it. Thanks to Derek Schoettle for writing it.

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Written by HeatherStone
3784 days ago

Hi Cate,

I think crowdsourcing is probably the one of these most often talked about today. That's probably partly because it at least seems like the one most accessible to small startups without the wherewithal to go after venture funding. Equally inaccessible to a lot of starting entrepreneurs without any support or connections are things like corporate investment or venture debt. And, of course, government funds seem to only apply to certain kinds of startups. So, I wonder if you could suggest some additional sources for entrepreneurs just starting with nothing but an idea, no connections, and no track record to point to.

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Written by HeatherStone
3782 days ago

Hi Cate. Thanks for the added options. I think bootstrapping too -- if you have a business model that can generate cash flow immediately -- is another good option.

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Written by CateCosta
3783 days ago

I actually did a blog post on the funding options available to new entrepreneurs awhile back and you can check it out here: http://www.catecosta.com/funding-sources-available-to-entrepreneurs-to-start-or-grow-a-small-business-or-startup/

However, if an entrepreneur has nothing but an idea, no track record, and no connections s/he is really going to be looking at their personal savings and investments from family and friends to get the funds to build the business up enough to prove the concept to other types of investors.

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