How To Attract Startup Funding, Part 1
When starting a business, one of the main problems that Founders face is is gathering together enough startup funding to get going.
Sadly, business startup capital is one of the chief things that keeps people from beginning a business in the first place. Insufficient funding is also a major problem for businesses once they get started, because having limited startup funding can make it difficult or even impossible to employ people or buy inventory.
Most banks will not help a new enterprise get started, because their business model relies on lending money to businesses with the ability to service debt from free cash flow. This in no way desribes a startup, which may experience negative cash flow for months or even years before turning a profit.
This can make things very challenging for a startup Founder, but it's not all bad news! There are several organizations and programs that specialize in helping startups overcome their initial financing problems, including our VC sponsor, GoVenture.
In Part 2 of this series, we will cover the ways that Startup Founders can attract the launch capital they need to get started, and also the continuing funding they will need to hire people and buy inventory.
