Top resources for funding your new US- based startups

Top resources for funding your new US- based startups

As shown above, establishing a business in the US has its challenges. But one of the key factors that every new business needs to consider is financing. Here are what I consider to be the best resources to get you started on your journey of start up.


1. SBA Loans and grants Small Business

Administration entitlements are available in several forms, as SBA loans.

SBA loans are beneficial due to their low interest as well as the freedom pertaining to its terms and thus can be advantageous especially to the startups who require funding.


2. Angel Investors


Angel investors invest money, as a rule and for convertible debt or an equity stake and can provide advice and access to contacts.


3. Venture Capital Firms


Venture capital firms comprise of professional investors that afford high growth potential and  business startups capital with an aim of gaining equity in return for fast growing the business.


4. Crowdfunding Platforms


Sites like Kickstarter and Indiegogo are examples where you are able to solicit funds from a large number of people who believe in your idea.


5. Business Incubators


Incubators offer tangible and intangible support services to new businesses including physical space, advice and seed capital for stake in return.


6. Accelerator Programs


Incubators provide short term support and hand holding through close mentoring and connection making alongside providing capital to support the development of firms.


7. Small Business Grants


Venture capital is the longest-standing option for providing external capital – but again such comes with dilution – and then comes other sources such as government agencies, corporations, and foundations to name but a few.


8. Peer-to-Peer Lending


Sites like LendingClub and Prosper match borrowers to investors seeking to provide loans and if they are going to receive a favorable rate of yield back.


9. Corporate Sponsorship and Partnerships


Large firms can support start up counterparts through sponsorship or partnership agreements and this usually ensures funding and validation of the startup.


10. Family and Friends


Self-organized networks could be a strong source of early-stage capital, but first, there should be terms and an understanding of what was agreed upon.

 And thus, if properly utilized, the above-funding resources assist you in providing your US-based startup. A strong financial base for success in today’s challenging market place. Always do your homework and well while searching for the available options. And those that best fit your organizational objectives and culture.

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