Fundraising is a necessary evil in many cases and scenarios. There is a 3Fs rule - Friends, Fools, and Family, and these three entities of your surrounding are one of the important sources of funding. Funding can be defined as providing grabbing one or more financial resources to finance an idea or need, product, or project development.
In broad-spectrum, funding is a term that is implemented when a company needs money from its internal assets and capital. Again, the term "financing" is employed when the requirement for cash is filled from any external or borrowed agent.
Streams of Investors Around You
There are various ways and sources from which you can stream your company's funding or innovative idea. Some of them are:
- Angel Investors: They are fund providers, but
they have a sophisticated kind of algorithm. They are not here to
make money by finding you and then waiting for your revenue. They
want to support you and payback and guide you in different
commodities and usually help startups start and grow.
Angel investors make a decision faster as the investor committee in such scenarios are small; let suppose that investor and his spouse will be the committee member. They can invest in you from a range of 50000 to 500000 dollars.
- Venture Capitalists: Venture capitalists (VCs) symbolize the most appealing and charming form of financing for all entrepreneurs. They are famous for backing multi-national ideas and firms in the very early stages. Moreover, many of the best-known capitalist and entrepreneurship success stories owe their intensification in financing from different venture capitalists.
- Crowdsourcing: It is all about passions,
skills, talents, and substantial resources facilitated by high-tech
platforms. This form of fund-raising can take place on a lot of
several levels in and across various industries.
Because of our growing connectivity and tools, technologies, and applications, it has become much more comfortable than ever to collectively put in ideas, expertise, and time of different individuals from different domains to raise funds for a project or idea. This combined enlistment is termed crowdsourcing.
- Friends and Families: You can approach them to raise funds for your idea or product development. You have to convince them, impress them with your speech, and express all the profit levels and earning ways that will make them invest in you.