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Your business stage is EARLY STAGE.

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Your business is in a position where product specifications have been solved and resources need to be addressed to deliver a solid go-to-market strategy.

→ Here are the best financing options you should consider:

1. Business Angels

Why ?

→ Informal investors that helps to fill a gap that lies between ideation (FFF) and growth stage (formal investors, i.e. Venture Capital & similar).

Important to know:

→ Most regarded factors by business angels are:

(1) Willingness of the market to adopt.
(2) Status of the new product development, including IP aspects if relevant.
(3) Time to market for the business model.
(4)  Potential of the market for growth.
(5) Relevant experience of the management team.
(6) Soundness of the financial modelling.

2. Accelerators

Why?

→ Support start-ups with a structured program along fixed curricula. They tend to look for companies with bigger growth potential & are focused on finding companies looking to grow either nationally or globally. They usually provide financial support through the provision of seed investment in exchange for less equity (5% to 10%).

Important to know

→  The accelerator experience is a process of intense, rapid, and immersive training aimed at accelerating the life cycle of young innovative companies, squeezing years’ worth of learning-by-doing into just a few months. Application process is highly competitive: Team composition; business scalability & growth potential; product & business model validation are regarded as key aspects to be admitted by an acceleration program.

3. Microfinance programs

Why?

→ Microfinance provides financial services normally tailored to low incoming entrepreneurs needs —such as credit, deposit, and savings services. Good microfinance programs are characterized by: small, usually short-term loans, and secure savings products.

Important to know:

→ Micro-finance is a widely used tool in emerging and developing countries. However, operating costs associated to it might even result in higher interest rates for borrowers. When applying, make sure to receive all relevant info about funding conditions.

4. Bank loans

Why?

→ Bank loans and leasing can be in most cases better suited to larger longer-term purchases, such as investment in plant and machinery, computers or transport.

Important to know:

→ To obtain a bank loan or overdraft, management must prove to the lender that the business will generate the income and cash to both repay the facility according to the terms of the loan, and service the loan by meeting interest payments.

5. Donation-Reward crowdfunding

Why?

→  Funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet (donation crowdfunding platforms: Kickstarter, Indiegogo, RocketHub, Zoomal). Individuals donate towards a specific project with the expectation of receiving a tangible (but non–financial) reward or product at a later date in exchange for their contribution.

Important to know:

→  If you are on B2C crowdfunding it’s likely to be an interesting option to raise funds for product development; gain market exposure & recognition for your solution (pre-orders) , find early adopters.

6. Grants and Competitions

→ Register your company to the Switchers Platform and have access to grants and competitions info in your region!