What is the best place to raise funds for a tech startup?

To better answer your question, it would help to know where you are in the startup process. Is this just an idea? Is the startup already in business? What your tech start-up is currently doing (including profits and losses) often play a big part in getting funding. Here are some funding ideas that you could consider:

  • Bootstrapping. Make sure that if your startup is running that you’re using the money that you have in the best ways possible. Cut any existing frills and focus strictly on what you provide. If you’re working a full-time job in addition to starting your business, begin to divert what you can of your own funds into your business. If you’re not willing to invest in your startup, why should anyone else? If possible, get a second job or a side-hustle to bring in extra cash for your business.
  • Crowdfunding sites. There are a plethora of crowdfunding choices out there. Using crowdfunding is a great way to let your social media followers, friends, and family get in on the action. They can help fund your business and they can share the word. Bonus: you don’t have to pay that money back. Many people want something in return for their money. Think about things that you can do to reward the people who fund your startup. Even something as simple as a t-shirt or a sticker that advertises your tech company can be beneficial.
  • Get a loan. Business or personal, a loan can give you the cash that you need for the business.
  • Investors. Remember that traditional investors will want something in return for their investment. It could be equity. It could be part of the profits. Angel investors may not ask for equity or profits in return, but they do want to know that they’re getting something out of their investment (such as being part of creating jobs in a certain area).

Depending on where your startup is currently at (and whether it has revenue) can play a large part in what will work best. If you’d like to talk with a business attorney about your specific situation to help you make the best decision for your startup, check out LawTrades. Our attorneys have worked for companies like Stripe, IBM, Harley Davidson and Dropbox so they’re well equipped to assist growing startups!

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