In continuation from Monday’s post.
Grants….Small Business Innovation Research Grants (SBIR) is available if your company is a technology business. This is a federally funded program that mandates that certain agencies set aside part of their budgets to fund high-tech companies with interesting inventions that they want to commercialize.
Grants are also available for women and minority-owned businesses. Funding for Grant programs is very competitive, but if you are lucky enough to receive one, you will likely attract other investors who are interested in your company.
Venture Capital….Not the best option for new or early stage businesses. If your company already has a proven track record with promises of high returns, it might be worth investigating.
Angels….Most “angels” are interested in companies that are further along in the development stages as a general rule. If you have a product or service that is currently out on the market and a proven management team, you might want to try this route.
Angels are private, high net-worth individuals, who typically invest between $50K to $2 million in companies. They can also provide expertise and useful contacts in the industry. There are “angel clubs” that have formed nationwide. They meet on a regular basis to hear brief presentations from entrepreneurs seeking money. They often give money jointly to companies as an investment.
You will find that sometimes it pays to be creative when raising money for your business.
