Strategies for Companies Raising Capital
Raising capital to start your business or help it grow can be an intimidating feat, but there are several different paths you can follow to find the funds you need on Agen slot. Here are six strategies you can explore to raise capital for your company.
Strategies for raising capital
Whether your company is a fledgling startup or a Fortune 500 rock star with impressive cash flow, access to capital is key to building a strong business. Thankfully, various funding solutions are available to help companies raise capital and take full advantage of market opportunities.
One of the hottest solutions for raising capital is crowdfunding. It’s exciting and incredibly public. You can create a profile quickly, record a video pitch, spread the word to your friends and family, and hope they help it spread it around the globe.
To be successful, you’ll need to:
Have a hot product or service to offer in return for funding.
Work with someone who’s amazing at creating compelling video.
Go crazy with online marketing to draw potential supporters to your profile.
Remember, with crowdfunding, you’re giving away a product or service, not equity. If you hit your goal, it’s your responsibility to deliver the exceptional products you promised in your campaign. [Read related article: What Is Crowdfunding?]
To get a feel for how to create a killer pitch, check out these insanely successful crowdfunding pitches:
MATE X eBike raised more than $17.5 million on Indiegogo.
Pebble Time raised more than $20.3 million on Kickstarter.
2. Venture capital firms
Venture capital is a form of equity financing, which involves raising capital through selling shares. Like the sharks on NBC’s Shark Tank, venture capital firms provide funding in return for equity in an idea or concept. [Read related article: Private Equity vs. Venture Capital: What’s the Difference?]
To successfully raise money with a VC firm, you’ll need to:
Create a killer business plan, packed with market research and a strong financial forecast.
Tap into your network to get past the gatekeepers and earn the opportunity to pitch to the VC’s investment board.
Craft the perfect pitch that comprehensively explains the opportunity, and prepare to answer some serious questions from the board afterward.