Thinking of setting up a startup? You’ve got the idea, the ambition, maybe even the staff too- now all you need is funding!
Unfortunately this is often the hardest part. How on earth can you get the necessary money together in such a small space of time?
It’s time to get to work! There are a number of different ways you can secure funding for your business, and with events like the Creator Awards coming soon- preparation is essential.
Let’s take a look at just a few ways you can secure funding for your startup.
Events like Creator are brilliant for meeting angel investors. 35 top tech companies will be attending the Jerusalem event in June with their CEOs presumably in tow. What better opportunity to rub shoulders with potential investors? Introductions on the day could lead to casual business discussion, or more formal negotiations further down the line. Before going, organise your budgeting, social media presence and communication skills. Get ready to truly wow them! Some of the world’s biggest companies were launched using angel investment, including Dropbox, Airbnb, eBay and Google.
Government Schemes (Incubators)
Very often your local government will have schemes in place which allow you to receive state funding for your startup. They usually differ on a country by country basis. For instance, if you were setting up a new one in London, the UK government’s Start Up Loans scheme “offers up to £25,000 at a fixed interest rate of 6 percent per annum for new business ideas, as well as mentoring and support services”. On the other hand, in Jerusalem once a startup has received funding, the government are happy to provide additional backing of up to $620 thousand (NIS 2.1 million).
Accelerators are another great way you could achieve the necessary funding for your startup. Not only do they give you the financial backing you need, but they provide the connections, mentorship and training that are necessary for the successful launch and consistent growth of a business. An example of this on Jerusalem’s rapidly growing startup scene is Sifitech. They are the first accelerator that were launched there back in 2012, with the goal of “transforming Jerusalem into a global hub of creativity and innovation”. Similar systems in New York include Entrepreneurs Roundtable Accelerator and Grand Central Tech.
It sounds strange to suggest someone make a crowdfunding campaign to fund their own company doesn’t it? However, this is an increasingly popular method that entrepreneurs across the world are using to afford business costs. A Financialist article states that “the niche for crowdfunding exists in financing films with budgets in the [US]$1 to $10 million range” and crowdfunding campaigns are “much more likely to be successful if they tap into a significant pre-existing fan base and fulfill an existing gap in the market”. Some campaigns that have been successful over the years are those that launched The Ubuntu Edge raising €10.8m in 2013 and the Mate.bike that gathered a total of €4.9m.
Want to learn more about startups? Come along to Creator Jerusalem this June.