Best Alternatives to Angel Investments

2045
Best Alternatives to Angel Investments

I wish I had a lot of seed money. It’s a common statement that comes from the modern entrepreneur and it’s usually said with a heavy sigh. Finding Angel investors who will provide this seed money isn’t always possible. Although bootstrapping for as long as you can is a good idea, you don’t necessarily need Angel investments to find entrepreneurial success. If you can’t find the investor you need, then here are some of the other options available to you.

1. Look At Equity Crowdfunding

The benefits of equity crowdfunding are that you will have an access number of investors who might not reside in your local area. The shorter financing periods that come with equity crowdfunding can make it so that you get smaller amounts overall with larger investor numbers, but there is a better chance of being able to find the capital you need to get an idea off the ground. It is just like any other equity investment. Using equity crowdfunding means that you are giving investors a portion of your business.

2. Offer Rewards That Make Sense

If you are unwilling to give investors a portion of your business, then raising money through a rewards-based system can help bring in the cash that you need. You generally need some sort of product to be able to promise an investor in order to get the money that you need. Think of it like an early ordering system. Your investors are putting down money now to be able to get the product that you are offering them in the future. Sometimes investors will send money because they like you or like the idea as that your offering, but more often than not, the quality of the reward will relate to the quality of investments that you receive.

3. Use Collateral

Although banking markets have tightened up over the years, it is still possible to achieve capital fundraising through traditional methods. The US Small Business Administration offers a lot of options to help small businesses be able to secure business loans that are needed. In general, you are going to need a strong credit history, and experienced team, a solid business plan, and some form of collateral in order to get the seed capital that you need to get off the ground.

4. Family and Friends

Entrepreneurs for generations have been getting the capital funds they need from their family and friends. These are the people who know who you are and what your performance is likely to be. They believe in you, so they are willing to invest their hard-earned money in whatever venture that you have. It is incredibly important to take this kind of investment money seriously. They might be family or friends, but they are also an investor. You should treat them as such.

Entrepreneurs are looking at Angel investors more often today because the ability to invest in a startup is becoming easier. Not every business to find the investor they need, so these four options can provide an alternative funding resource if it is needed. Strap up your boots, hit the streets, and get the money you need today.

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Marc is the founder of Vision Launch Development Group. Vision Launch was created to inspire, empower, and promote social entrepreneurs – and be a vehicle for positive change in the world. Marc is strong proponent of individual freedom, freedom of speech, economic empowerment, open source and decentralized peer to peer solutions.