How can I fund my startup?

Bill Reichert / November, 2017

Description

Bill Reichert, Managing Director at Garage Technology Ventures explains different options to fund your startup.

Video Transcript

How can I fund my startup?

The best way to get funding for your startup is to sell products to customers. So the best source of funding for any startup is revenue. Ideally, if you can do that, it’s pretty hard for most entrepreneurs. So normally you’re going to have to go out and scrape something together. At the earliest stage, there’s credit card debt, I have seen people use student debt very cleverly.

Ideally, if you are already at university, get university grants, that’s a really cool way to get money. If you want to start up a company and you’re already at a university, I recommend you stay at the university and you cozy up to a research professor, get some grant money that could be a great way to get funding. If you’re not at the university and you’re beyond that, then maybe you got some credit cards, maybe you got some mortgage debts you can possibly raise. Then you start talking about raising money from friends and family and raising from professional investors, so moving up at that track. Initially, if you happen to have friends and family who are excited about what you’re doing, and have some money they can spare then maybe that’s a way to just get started.

Ideally, as soon as you can you want to move towards professional investors. Normally that’s going to mean initially angel investors. So either individual angels if there are some in your community, or an angel group is even better. Finding a group of angels that work together that can be extremely valuable. After that, you might move up to venture capital investors, professional funds that are in the business of investing equity in companies. So that’s generally the span of investment for a technology startup company. Generally, banks are not available to startup companies, until you get to revenue until you have something financeable. So you’re going to have to be up there, up-and-out with revenues before you’re really going to be able to tap bank financing.

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QUICK INFO

  • Bill Reichert, Garage Technology Ventures
  • November, 2017
  • 2:04
  • Funding

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