Captured Technology

Technology Startup Funding Sources

Jul 09 2013


Kickstarter (Photo credit: Scott Beale)

Technology Startup Funding Sources

Any startup business or company, from fine arts to music to technology, will require some major funding to launch. In this situation, there are ultimately four methods for attaining the necessary capital.

Startup Funding Methods

-Bootstrapping: similar to the term "penny pinching" in which personal capital is used
-Series A financing: essentially a loan; available once company has slightly proven itself
-Love Money: funds obtained from friends and family
-Seed (also known as angel) financing: venture capital

Investors and Business Partners

One of the quickest and most popular ways of growing a worthwhile product or service is by collecting a number of investors or even business partners. is an online business networking site that connects qualified associates or lenders with startup owners looking for a strong source of funding.

Funding for Big or Small

Kickstarter has been a strong funding source for years due to the lack of stipulations necessary to apply. For just about any startup that is any size, whether a solo venture or a team effort, Kickstarter links companies with millions of investors to fund successful matches.

Funding for the Most Serious of Pitches

Shark Tank is actually a television show that is currently entering the fifth season. Instead of featuring a panel of judges, however, Shark Tank has a panel of possible investors and the contestants are actually eager entrepreneurs hoping to secure funding for their startup. For those needing serious investments, going on the show could prove to be the simplest route to achieve that. The typical hour long business pitch is cut to allow only a short ten minutes for each contestant to passionately and accurately explain why they should receive funding. Notably, the panel typically points out any flaws, faults, or other weaknesses surrounding each business model. The upside to this constructive criticism is that even the entrepreneurs that leave empty handed have valuable professional advice to make their business pitch that much more appealing to a new set of investors.

Celebrities Using Kickstarter to Fund Their Projects

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 Patrick Stevens
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