Every startup looks for funding at some stage in their business journey. This is a fact and it is most evident by the fact you’re reading this article and are probably an entrepreneur looking for startup funding.
Well, this might be your lucky day.
At Tech Collective, we’re a group of entrepreneurs and technologists, who have lived through the startup funding game, so we’re fully aware of the risks and struggles. As a tech publication, we’re also constantly surrounded by entrepreneurs whom we make sure to ask questions about issues like funding and their constant struggles.
Therefore, in short, this article comes from a place of real pain and experience. Here are some of our tips to get funded without giving away equity.
Startup funding through Government Grants
Every country we know in the region offers some form of government support for local startups and SMEs. If you’re not taking advantage of them and using the seed capital to build your business, then you’re not doing it right.
Singapore leads the pack quite easily, but every year new grants and more funding are pumped into the startup ecosystem.
Some grants to consider:
There are likely to be local grants that you might be applicable, so do your research to make sure you don’t miss out on any of them.
Crowd Funding might work for you
Crowdfunding sites like Kickstarter, Indiegogo, and others, might be the vehicle you need to raise much-needed funds and get a large user base quickly. As a marketing engine and funding vehicle, these sites can be a great way to reach a wide audience and sell your product or service before its even ready.
The pitfalls of these sites are that as a startup funding vehicle, it puts pressure on entrepreneurs to deliver products or services even if they’re not ready. There also has yet to be a consistent string of major successes through crowd-funding.
The old friends and family support network
The tried and tested method to get equity-free cash is to tap into your family and friends, use your doe eyes to get at least a few bucks from them to fund the next month or two.
I don’t condemn or condone it, nor have I used this method, but everyone else I spoke to has told me that you’ll be an idiot to not even attempt to try.
One piece of completely unsolicited advice I would offer would be to share the real risks and potential with your friends and family. If you do, they’re more likely to remain a close part of your life if your venture doesn’t pan out the way you wanted it to.
Anyhow, there you have it. Some simple, but effective ways to get funded without giving away that precious equity.
If you have any other suggestions or thoughts, or even if you just want to chat, drop us a message here.