First time entrepreneurs mostly rely on friends, family and savings to take their business to the next level. To increase your chances if raising seed money, its important to have a proof of concept and a business plan(not necessarily a 30 or 40 page document). If you intend to raise seed money for your idea or new startup, these ideas and tips will be helpful.
- If possible, start with your own savings and borrow from friends and family first — bootstrapping.
- Find someone to personally vouch for you and get you the first meeting
- In principle you can reach business angels through ‘business angels clubs’ or ‘business angels networks’.
- You can join your local chamber of commerce, which provides local networking opportunities with other small business people.
- Participating in an incubator program, where they provide office space, business guidance, mentoring and possibly some cash
- Look within your own network, friends and family, They proabaly already trust you and you can trust them with your ideas.
- There are several organizations whose sole goal is to manage donations for entrepreneurs. Find them and source for some of the donations.
- You might want to seek out Angel Investors in your area. You can pitch your business directly to these well funded individuals
- Bring in early employees to continue development for free (in exchange for equity) and thus avoid the need for any cash.
- Look for some teams offshore who would like to build products for startup with some equity stake.
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