Beginner's guide about funding

1. Funding a Startup
Yang Hong

2. A lack of funding is a serious issue for many
entrepreneurs, and it is a major reason why many
businesses never even get off the ground.

3. Equity Debt

4. Bootstrap Crowdfunding Accelerators Investors

5. Bootstrap

6. Paying for it yourself with your hard-
earned cash.
Grow an audience and a user base
that will serve as validation.
Pros Cons
Bootstrap
Possibly lead to revenue or profit
before you seek out additional
funding.
Working on a project as a side-
hustle.

7. Crowdfunding

9. • Keep equity in your business.
Pros
Crowdfunding
• Social media: spread the word about your new project and
reach new customers.
• Get feedback early-on in the innovation process
• Data of backers and pledges can be used a validation of
your target market.

10. • Pay taxes on any pledges that are not donations.
Cons
Crowdfunding
• Invest time and money in creating an attractive project
page, rewards and make a compelling video.
• You risk the chance of having your product or idea
ripped off.
• You must spend time marketing the project, reaching out to
reporters, and being attentive to backers.

11. Accelerators

12. “Accelerators focus on supercharging early-stage business
growth by providing short programs (usually 2-4 months long).
They will take applications, dole out funding to those that
pass in exchange for equity.”
— foundr.com

14. • The network effect: mentors, advisors, former alumni
companies.
Pros
Accelerators
• Your neighbors (in the same accelerator): . It helps to be
where folks are at your level, and it helps to see high and low points
at the same time. It helps with motivation and keeping morale high.
• Brand recognition: Some accelerator/incubator programs are
difficult to get into. When other companies, potential employees,
investors all see that you graduated from a program of this caliber, it
sets you apart from other startups at the same stage.

15. • Giving up a chunk of your company: You’re giving up a
significant piece of your company to a program that will only have six
months of influence on your company.
Cons
Accelerators
• Aligning business needs with incubator needs: There’s
a lot of pressure when you enter incubators to scale, and they can
put a lot of emphasis on fundraising and how to go about getting
investors.
• Lots of must-attend events: While some events were useful,
some things you might not want or need for your business.

16. Investors

17. Venture Capitalists Angel Investors

18. Venture Capitalists
Venture capital firms find businesses
with high growth potential.
The firm take shares and have a say in
the future of the company and its
running, and they expect a high return
on investment.

19. Venture Capitalists
The Money is Yours
The Resources to Compete
Connections and Expertise
Misaligned Goals and
Priorities.
ConsPros
You Aren’t in Full Control

20. Angel Investors
Angel investors put their own finance into the
growth of a small business at an early stage,
also potentially contributing their advice and
business experience.
Angels make their own decision about the
investment, and in return for providing
personal equity they take shares in the
business.

21. Angel Investors
Is willing to take a Risk
Odds of Success Rise
Might Set the Bar Higher
There will be Strings Attached
Pros
Cons

22. Bootstrap Crowdfunding Accelerators Investors

23. https://foundr.com/funding-a-startup/
https://www.crowdcrux.com/pros-and-cons-of-crowdfunding/
https://en.wikipedia.org/wiki/Startup_accelerator
http://theqec.com/the-beginners-guide-to-startup-accelerator-programs/
https://www.investopedia.com/terms/a/angelinvestor.asp
https://www.startupgrind.com/blog/pros-and-cons-of-using-an-angel-investor-to-fund-a-startup/
https://www.virginstartup.org/how-to/difference-between-angel-investment-and-venture-capital
https://www.forbes.com/sites/theyec/2013/09/20/the-pros-and-cons-of-accelerators-for-startups/#5e9f3cfa22e3
Thank You!