startup funding

[debbie1109]

Some of newly established start ups get millions of dollars in funding. How does the funding work?

1. What are the prerequisites of getting a funding?
2. Does the business approach or the funder?
3. What will he get in return?
4. Do the funder look only into established business or the idea?

[Paul]

The millions raised by startups is not always what it seems. These “startups” have usually been in development for some time with a significant amount of seed capital already invested, management and marketing plans and exit strategy in place etc. Kind of like a singer getting a hit record after years of singing unnoticed in bars and clubs. It may look like an easy overnight success but it’s not.

[Kyle Johnston]

Check out these crowd funding/investor websites, they can produce some nice funding:

Kickstarter (http://www.kickstarter.com) is great for crowd funding campaigns. Usually this method involves using small amounts of money from large numbers of people. With kickstarter, you create a campaign with a time frame and amount you want to raise. People who like your campaign can pledge x-amount of money. If the campaign goal is met, all contributors are charged and if you fall short, nobody is charged. Kickstarter charges a 5% fee.

Invest in Startups | Wefunder - Crowd Investing (http://www.wefunder.com) and Startup Investing & Equity Crowdfunding Community - Onevest (http://www.onevest.com) these sites use crowd funding geared towards start-ups and work similar to kickstarter. You will create a profile of-sorts for your idea and people can choose what to invest in.

Startup Funding & Investing | Angel Investors (http://www.gust.com) - this site uses groups of angel investors and investment capital. Securing funding through this site is the hardest of the group, but it can provide the funding needed all at one time. This site works the same as others, create a profile, detailed description of your business, and let the investors decide.