How do you fundraise for your business startup?

My answer to How do you fundraise for your business startup?

Answer by Raad Ahmed:

There are many, many ways to raise money for your startup. Here are some:

  • Bootstrap it yourself. Self-funding from your savings is always preferred as you don’t have to give up any of your ownership.
  • Ask your “friends and family.” This can be a risky source as business relations can affect your personal relationships, yet they can be some of your biggest supporters and open to attractive terms for repayment.
  • Find a major customer to front the beginning the costs
  • Use a crowdfunding website like Fundable. Make sure you read the fine print in your agreement with the various sites.
  • Loans through the U.S. Small Business Association. A lot of different options here, and historically a solid option for small businesses.
  • Credit cards / mortgage your house.
  • Sell cereal like Airbnb did back in the day (:
  • Peer-to-peer lending on a site like Propser. Like crowdfunding sites, read the fine terms.
  • Secure a round of funding from a venture capitalist (VC) and/or angel investor.

Hope that helps! If you need some sound legal advice during your fundraising then feel free to stop by LawTrades where you can schedule a free 20 minute consultation w/ a top notch startup attorney.

How do you fundraise for your business startup?

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