Captured Technology

Tech Startup Funding Options

Sep 14 2013

English: A photo of crowd funding expert Pim B...

English: A photo of crowd funding expert Pim Betist (Photo credit: Wikipedia)

Tech Startup Funding Options

Getting tech startup funding is always a challenge and many techpreneurs often find themselves shutting down their businesses before they even get a chance to commercialize their ideas. Getting startup capital for any type of business is a challenge, and not just for technology firms. This is because research studies have shown that the vast majority of startups collapse before their fifth anniversary. This is what has made financial institutions and investors wary of such investments. The good news is that techpreneurs have numerous other options for funding.

Tech Startup Funding Options

The most popular type of funding for startups especially tech firms is venture capital. There is a community of business people in any given city or country who have excelled in business and investing. These individuals are normally referred to as venture capitalists. They usually invest in startups that have a strong business potential. You can find such people in shows like Shark Tank.

Crowd funding has also become very popular over the years. This is where members of a network come together to raise funds to support a business idea that has a huge income generating potential. There are many crowd funding sites on the Internet that may be able to help techpreneurs get tech startup funding.

Another funding option is selling shares to members of the family. After registering a company, you can sell some shares to friends and relatives who will then become shareholders in your business. Alternatively, you can ask your friends and family to loan you some money to start the business and pay them back once the business starts generating revenue.

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