5 Funding options to raise capital for your Startup Every startup needs working capital and capital to get that boost start. Not all startup has the leverage of having the capital funds that are required. And that is the reason why most of the startups fail during their first year of establishment. We understand this need for financing your startup and that is the reason we have created a comprehensive list of the ways you can get funding for your startup. 1) Venture Capital Venture Capital or VC’s are the high-end individuals or corporates or other groups who invest in the startups. The VC’s generally have huge funding capabilities and they look out for high ROI or huge potentials. Make sure if you apply for the VC you should have
the project file & project vision and financial plan ready for the project. VC’s normally take equity in the startups, you might want to take that into consideration. Funding rounds led by VC investment can be huge. The biggest Australian capital round last year saw HR startup Deputy raise $111 million in a round led by Silicon Valley VC IVP.So far in 2019, we have seen some more modest deals, with the Internet of Things startup GoFar raising $1.3 million; software startup Curious Thing securing $1.5 million in seed funding; and, Kiwi edtech startup Kami completing a $1.4 million raise led by Aussie VC Right Click Capital. 2) Crowd Funding & Equity crowdfunding Equity crowdfunding legislation was given the green light in Australia in March 2017, allowing individuals to invest small amounts into companies for small amounts of equity. Many of the startups are opting in for the equity funding and they consider it to be a good alternative, but you might want to take into consideration getting your startup into private company might come with some complications at the same time this is a great way of allowing your customer to be part of your journey. Last year, cinema ticket startup Choovie embarked on a campaign to raise $700,000, with founder and chief Sonya Stephen saying the idea was “to get our fabulously loyal customers to become shareholders". In 2016, Melbourne headphone startup Nura completed the most successful Australian Kickstarter campaign ever, securing $2.5 million from almost 8,000 backers. In 2017, Aussie product design startup Orbitkey ran four campaigns on Kickstarter, raising a total of $1.5 million for its flagship keyring product designed to make it easier to carry multiple keys at once. We would recommend you to approach https://readyfundgo.com/ as they are expert people in helping you to get those funds across and help your startup with the required fundings.
3) Government Grants Australian Government is supporting the startups by proving various grants to boost their morale and provide with motivation to start something exciting. The Entrepreneurs’ Programme, which replaced Commercialisation Australia and the Innovation and Investment Fund in 2014, aims to help businesses increase productivity and competitiveness with funding and access to a national network of private-sector advisers and facilitators. Austrade Landing Pad: This initiative aims to give Australian startups a leg-up in the global market by immersing them in one of five world-class innovation hubs. Startups accepted into Landing Pads in Singapore, Berlin, Shanghai, Tel Aviv or San Francisco benefit from an on-the-ground presence in these markets plus access to their networks, talent, mentors and investors. Biomedical Translation Fund (BTF): The Biomedical Translation Fund (BTF) was established by the federal government as part of the National Innovation and Science Agenda in December 2016, and was fuelled with $250 million of Commonwealth capital and an additional $250 million of a private sector capital.
4) IPO & ICO’s Well, generally speaking, IPO & ICO’s are the very traditional way of getting the funds and there are many challenges back & forth for the same. Especially in ICO’s, there have been facing trust issues as there are many Ponzi ICO’s which were launched around 2017. But there are still people investing in IPO’s and ICO’s. You should be although very careful with the IPO’s and ICO’s. There are many restrictions on marketing aspects of the ICO’s by social media sites & Google as well. 5) Angel investment, Business Loans and Funding From Business Incubators & Accelerators: Angel investors are typically high-net-worth individuals with particular expertise or interest in a specific industry or technology, looking to make an investment in it. Often, they will be keen to contribute to the startup’s success with skills, knowledge, and contacts. Some startups will rely on just one angel, but often once one reputable backer is on board, more support comes flooding in. Equally, there are several angel groups such as the Sydney Angels and women-focused network Scale Investors. You could apply for small business loans if you are looking to raise a small amount of investment initially just to launch your MVP. Another option is to get funding from the Business Incubators & Accelerators. Early-stage businesses can consider Incubator and Accelerator programs as a funding option. Found in almost every major city, these programs assist hundreds of startup businesses every year. These programs normally run for 4-8 months and require a time commitment from the business owners. You will also be able to make good connections with mentors, investors and other fellow startups using this platform. You could approach Voyager Ventures & apply there as funding as they are the guys we would recommend you if you are looking for funding your startup.