Startup Seed Funding Tips for Founder
When you start a new company, you need capital to help you meet your initial needs and cover-up its cost for kick-starting your business at its initial stage.
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Raising money is very difficult it is so difficult that it’s just one head beyond. Most companies and start-ups botch at it. For an instance – The CEO of the company called slide bean says that thousands of startups have used their platform for creating a pitch deck. Well, it also mentions that their success is our success and learning a thing or to about what works and what doesn’t. They started their company in 2011 and they failed miserably while raising the capital and it was heart-wrenching to work hours on this project and emailing your customers letting them know that it’s game over. The problem with the company was that they wasted too much time trying investors that they failed to find some fundamental flaws.
Well, let’s get into some idea of what it sees as seed funding what does it do how does it help?
When you start a new company, you need capital to help you meet your initial needs and cover-up its cost for kick-starting your business at its initial stage. At the early stage, your company is like a mustard seed and for it to grow, you need early investors to know as seed investors. Seed investors are usually high network people that would potentially invest in your company in exchange for equity or shares in the company.
Until your company reaches a profit-making stage, seed money helps you support the early hygiene for your business. While seed funding makes you give up a few shares of your company but it comes with a lot more than you give in. A share of a successful company is better than owning an entire nothing.
Wonder what is the use of the seed capital?
It helps in setting the initial prototype for the company. You can invest the seed financing on extensive market research and competitor analysis which helps you study the in and out of your arena in business. The seed fund can be used to pay the crucial members of the team that contribute towards the growth of your company. The fund can also help you with the legal proceedings of your startups. With seed funding, you come in terms with investors which put the future of your company into a more secure, promising and higher ground than it was before.
Seed investors are also known as angel investors that are readily available to invest in early start-ups. Angel investors are believed to accept only 25 per cent of investment proposals that they receive. Angel investors possess money as well as experience which gives your company the potential to fly. Developing allowance in this way barely lends you some wealth to encourage you to get to the following phase of development, but it furthermore allows you to know that supplementary further competent people speculate in your intention and that what you’ve assembled so remotely has the conceivable to be prosperous.
How does Public Relation help?
Many of the startup owners are hesitant about investing in public relations at an early stage however the fact that it comes with huge payoffs is often unknown. Getting your visions and ideas written and covered by the press can not only help increase the visibility of the company but also help you distinguish yourself from others. Angel investors are eager to invest in companies that are innovative and exciting.
Raising funds at an initial stage is a struggle for most companies since the company has negligible or limited details to share with the investors.
PR must be considered essential while announcing a need for seed investors since it will not only help in building relationships with the investors but also increase the credibility of your company which is the key criteria for fetching investors and building a target audienceSo if you’re looking to startup launch grow a new business and especially if you’ve never done it before the most confusing thing to you right now is where you’re gonna get money and how much money you need so on that if you’re not sure exactly how much money you need to fund initial start-up cost from organizing the business to getting licenses to insurance.
Here are 4 startup seed funding tips
Some of you may ask what is bootstrapping. Well bootstrapping is the most common form of startup capital. The term bootstrapping is the use of your fund’s relative fund’s or friend’s funds to launch your own business. So this could be the money for your day job, you’re saving accounts, and your heritage or even reverse mortgages if you want to go that far now while this is a great way to keep your debt low & you own your business outright potentially there is a risk if you do bootstrap and your startup fails that you would be in a bad spot because you’re investing a lot of money & typically people bootstrap they invest more than they should in their own company and deplete their entire savings so perhaps bootstrapping can be the most high-risk high reward type of funding for a company.
2. Contest Prizes
Now a lot of people might not know that there is a lot of competition and contests specifically for startups and these pitch competition is very plentiful and they have been a year around. There’s a lot of competition where you can win a significant amount of money depending on the competition they range from one thousand to five thousand to twenty-five thousand to a hundred thousand dollars if you just win. And the good thing about these competitions is depending on which one they are the majority of them you don’t have to have anything concrete.
The third way you can find fund the venture is through bank loans. Some people may know these as business loans. Now banks that give out business loans there are a lot of pros & cons of these.
A pro is that it provides complete ownership. It’s a better option for businesses that don’t want to lose equity or hyper expand. Business holes are typically good to just kind of start off & get the foundation & work on building your system & make sure you are perfecting your craft while you’re in the incubation period of your company until you get to the accelerating period of the company. So typically a secure way to get a business loan is you will have to go to your bank. The good thing about business loans is that there are plenty of them out there and many commercial banks offer small business loans and are fairly easy to apply. Have a plan that showcases the thought you have put into this investment
Some of you may be asking well what an investor is. An investor is someone that will take equity and your company meaning they’ll take a per cent ownership of your company and in return, you will be able to exchange capital for that ownership percentage. So typically there are two types of investors there are first angel investors aka early on investors and the second is venture capitalists.
Also Read: 10 Things Every Small Business Needs to Know About PR
What exactly is a venture capitalist? Venture capitalists are large entities that have a large sum of money that is bundled up from either investor pension funds 401ks etc. their venture capital gives one per cent of their total fund to a particular startup and it’s a lot of money. They offer business anywhere from you know five million to 100 million may be or even more. So if you get venture capital that will work for hand & hand with you. You won’t be left alone because they wanna see you succeed. It’s very difficult for an early-stage company to acquire venture capital.
Public Media Solution offers you to help your seed funding. They help startups to have much needed seed funding to finance.
Public Media Solution
Public Media Solution CEO: Ravinder Bharti Services Offered: Media Relations, Digital PR, Crisis Management, Search Engine Optimization, Content Marketing, Fundraising Solutions, PPC Advertising, and more Clients Served: Techila Global Services, Jack Louis, Rezolve.ai, iSync, KC Overseas Education, and more Founded In: 2017 Public Media Company is a renowned agency headquartered in Pune that provides end-to-end branding and PR services to its clients. The company has catered to several clients within and outside India by offering them an ideal bouquet of digital marketing services. The company’s PR services include media relations, corporate communication, reputation management, print media, and more. Public Media Solutions helps its clients in building their brand and propagating its essence across multiple platforms. The company’s content marketing services have carried out deliveries of lakhs of words to the clients since its incorporation. Public Media Solution al