5 Ways To Attract Money You’re a young company with an interesting product in development. You’ve watched a few startups rise to glory, watched others crash and burn. Undeterred, you’re sure you can make. All you need is a bit of cash to get on a growth track and inch closer to profitability and success. But how do you go out and get that growth capital? You could bootstrap it by cutting your expenditures down to almost zero, living on dehydrated noodles and doing laundry at mom’s place, but that will only go so far. There’s always crowdfunding, but to get any attention doing that you need a seriously unique or wacky idea like or a shake that replaces food or a film about Nazis living on the moon. There’s always a bank loan, but even if you can get it that’s just money with interest attached and it would be great to get cash plus contacts and guidance. Venture capital is always an option. “I see a healthy venture capital market for startups,” said Charles River Ventures’ George Zachary, who led his firm’s investment in Yammer (acquired by Microsoft for $1.2 bln. last year). “I don’t see any shortage in venture investors wanting to fund startups.” Maybe venture capital or angel funding is the way to go. But how do you make the bigwigs at a venture capital firm deign to cut you a check? Here are some tips that may help you fund your enterprise: 1 – Disrupt Something Getting in between an established competitor and its cash cow is tough, but lucrative when you can pull it off. Disruptive products and technology can help your company eat the lunch of the bigger players in your space and if you can convince an investor that your business model can accomplish that – even a little bit – that investor will see the rewards and be more willing to help you grow your idea. “We’re looking for truly non-linear companies that disrupt large B-to-C and B-to-B markets,” says Jason D. Whitmire, a partner with Earlybird Venture Capital. “Usually these teams have to have a very strong (tech) DNA. That means technology at their heart. Ideally they’re all very techy people. Increasingly, I think, businesses that build engagement or networks leading to a high degree of defensibility are extremely attractive.” 2 – Have A Touch Of Experience forbes/sites/karstenstrauss/2013/08/05/5-ways-to-attract-money-2/ #Tech #Technology #News #Updates #Like #Follow #Comment
Posted on: Mon, 05 Aug 2013 13:08:05 +0000
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