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5 Alternative Ways to Raise Money for Novel Business

Many aspiring businessmen are tightening their belts and looking for cash cows. Some of them have managed to get on the gravy train, but nobody can afford to spend Money like there is no tomorrow. Besides, the fact remains the lack of funds is the biggest hurdle on the road to success for startups. Hence, one must weigh the pros and cons of different options before making an informed decision. Here are some great ways to witness the green coming your way, without asking the loved ones for help or selling valuable assets.

Crowd Funding

The digital revolution has forever changed the business world. The internet has introduced the phenomenon of crowdfunding websites, convenient hubs where people with similar interest and goals rally around business ideas. Here, funding is a joint effort with the purpose of getting a project off the ground. The process usually plays out swiftly and the money that can be raised is impressive, although many grants are symbolic. Also, business owners have to consider how to award the contributors, either by giving shares of the company or gifts.



Loans are a necessity more than anything, but it is never a good idea to go for loan sharks. Instead, you can opt for alternative sources of financing such as invoice factoring. This option allows you to overcome one of the biggest frustrations: Waiting to get paid. Namely, you receive the money right away by selling your accounts receivable to a factoring company. This can help you keep your head above water and tackle long payment cycles. Just take your time researching factoring companies and find a trusted provider.



One of the most common ways to rise above financial predicament is to seek the backing of Angel Investors. They have helped numerous enterprises get on the fast tracks to success. Not everything is rosy, though. In the beginning, it can be rather hard to convince investors your company is worth the risk and money. Moreover, angel investors tend to dig in their heels when it comes to shares and profits. They are versed in navigating legal and financial waters, which means you should tread carefully.

Venture Capitalists

Another helping hand comes in the form of venture capital (VC), the place where big bets are made. VCs are, in fact, professionally managed funds that seek companies with immense potential. The investment is most often carried out against the equity and seizes once an initial public offering (IPO) or acquisition takes place. Still, businesses that are past the startup phase are also eligible targets for VC. In any regard, one must learn how to pitch a VCin order to receive expertise and mentorship that guide you through stages of business growth.


Business Incubators and Accelerators

This funding opportunity is tailored to organisations in their infancy. It exists in most major cities and aids countless startups that endure financial hiccups. Even some world-renowned companies like Airbnb and Dropbox made this kind of head start. Incubators are like nurturing parents that provide training, shelter tools, and networking opportunities.  Accelerators do pretty much the same, but also focus on enabling the startup to make leaps and bounds. The programs usually take 4-8 weeks, albeit the frame varies from business to business.

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5 Alternative Ways to Raise Money for Novel Business


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