The Definitive List of Financial Resources for Startups & SMEs
Financial resources play a crucial role in creating a successful start up or SME. They allow entrepreneurs to fund their businesses and plan ahead without worrying about cash flow. However, finding the perfect fit between funding and business model can be challenging.
Here’s a comprehensive overview of every type of financial resource you’ll ever need and why they matter. This article includes sources of financing such as venture capital (VC), angel investors, crowdfunding platforms, equity crowdfunding and debt financing, among others.
Venture Capital (VC)
The most common source of investment for high growth startups is venture capital (also known as VC). Venture capitalists are essentially wealthy individuals who provide capital in exchange for a stake in your company that works on behalf of the investor and aussie online casino players. In return, the investor receives part ownership of your company as well as an agreed-upon portion of any future profits made by the firm.
Angel Investors: Private Equity Investment Funds
Another popular form of financing is Angel Investing. These types of fund invest in companies based on the potential returns these companies could make for the investors. By investing early, these funds have more time to observe the company’s progress before deciding whether it will pay off.
Crowdfunding Platforms: The New Way To Crowdsource Funding
Crowdfunding platforms like Kickstarter, Indiegogo, and GoFundMe offer another way to raise money for startups. They let people from all over the world pitch creative ideas in hopes of raising the necessary funds themselves. Unlike traditional fundraising models where only a few people get involved, with crowdfunding everyone has a chance to contribute to the company’s success.
Equity Crowdfunding: A Less Traditional Route For Financing??
In recent years, there has been a growing interest in equity crowdfunding platforms. Instead of taking up valuable bank accounts, this method allows small investments through initial coin offerings (ICOs) and token sales. It also lets people invest in smaller amounts than traditional crowdfunding platforms.
Debt Financing: The Best Option If You Need Fast Money!
If you want fast access to money but don’t care about ownership stakes, then debt financing might just be what you need. Debt offers borrowers immediate access to funds whereas equity crowdsourcing usually takes months before investors receive payments.
The Bottom Line
So whether your startup is for an online gambling platform, an eGaming engine, an online retail store, or anything else, financial planning plays a huge role in making sure your real money casino business stays afloat. Be sure to pick the right mix of resources and start up capital so that your idea becomes the next big thing!