Securing adequate startup funding is crucial to the growth of a new business. There are many different funding options to choose from, including friends and family, angel investors, VC support and small business grants. Choosing the right option can be challenging, as each type of investor has unique requirements and expectations. This comprehensive guide to startup funding explains the various investor types and landscape, and provides tips on how to confidently approach and pitch your idea to prospective investors.
Before seeking external funding, startups should have a well-written business plan that outlines the company vision and market opportunity. Investors expect to see financial projections based on thorough market research and realistic assumptions. They also want to be convinced that the founders have a solid team and can execute their vision. They may also require proof of concept or traction such as customer testimonials, pilot programs, and early sales data. In addition, they may have specific legal and compliance requirements that need to be addressed.
