When it comes to startup fundraising, the options may seem overwhelming. VC funding is highly competitive, making it even harder to turn down if an offer is made. A healthy check can be secure your startups future, but it comes at a hefty price—a percentage of the company and influence over that future. However, you should be aware that there are many more options for startup fundraising that don’t involve sacrificing equity or control of your business.
Crowdfunding for Startups
Crowdfunding is one of the most modern ways to get some cash for your business. There are numerous websites, such as Fundable and Republic that allow anyone, not just fund managers, to invest in your startup, for much smaller stakes in your company. This also allows founders and their teams the opportunity to be more creative with fundraising, incorporating fun contests into the campaign, creating free products, and having a more direct connection to their customers.
States, colleges and non-profits offer a wide variety of startup grants throughout the country. These grants usually focus on specific business ventures or supporting certain types of entrepreneurs, like women, minorities or veterans. You can find many directories online including Grants.gov, SBIR for research, development and technology within the Small Business Association. Be sure to check on the state and federal level to see if there is a grant that aligns with your business. This is free money that you don’t have to repay or be forced to give away part of your business.
If all else fails, you could opt for a commercial loan. Yes, you’ll have to repay it with interest, but you won’t have to give up any of your business in the process. Think long and hard about this option to consider if it’s in your company’s best interest to go this route. Remember, you should think about the bigger picture and not just the short-term payoff.
Ask a Startup Attorney for Help
Being an entrepreneur is exciting and rewarding, but it poses its fair share of risk and challenge. If you would like some help, then come have a chat with us at LawTrades. We can connect you with a skilled startup attorney that can help you with everything from business formation to fundraising contracts. You may even want to opt for a subscription-based legal plan so you can get legal help when you need it the most. Other perks for this option include $0 service fees and discounted hourly rates—plus more! Get in touch today so we can get this process started for you.