7 ways to finance your startup

You have the idea, the drive and the knowledge: but what about capital? Financing is an essential part of every company, because without the starting capital you cannot start ... up.

Entrepreneurs are generally smart and diligent. They know exactly what they want and how they get there. However, many do not know how to best finance their start-up. Recognizable? Then this article is a must read. Holland Startup shows you 7 ways to finance your startup!

1. Request a subsidy

Applying for a subsidy for your company is a common way to finance your plans. However, do not expect that you will receive a massive check.

There are countless subsidies available, offered by the government and even by private companies. Grants are definitely worth it, it is one of the options for financing your starting company.

2. Crowdfunding

Crowdfunding is generally used by starting or growing companies. It is an innovative way to find financing for new projects, companies or ideas.

It can also be a way to cultivate a community around your company. By using the power of the online community you get useful market insights and access to new customers. 

Crowdfunding is one of the favorite finances of companies in the digital economy, and probably also the fastest way to get financing for a new company. 

You don't even have to be a massive tech savvy to launch a crowdfunding campaign, but what you do need is a convincing pitch!

3. Approach an angel investor

A major advantage of working with angel investors is the fact that they are often more willing to take a greater risk than traditional financing institutions, such as banks. Angel investors are usually experienced business people with a number of years of work experience and knowledge. When approaching potential angel investors, you ensure that they get to know more about you, both about you as a founder and about your business. 

Most angel investors will ask for a pitch. Is it that time? During the pitch meeting, take the time to build up a good relationship. Angel investors prefer to invest in an entrepreneur they like rather than an idea they like. 

Find the right angel investor and benefit not only from their financial support, but also from their wisdom.  Is your startup ready for an angel investor? You can read that in our blog!

4. Collect money yourself

Many entrepreneurs choose to completely self-finance their company, "bootstrapping" it.
They choose to invest saved money in the growth of their business. In this way, they retain full control: more than 90% of start-ups start without the help of loans or subsidies. 

5. Friends and Family

Het idee om vrienden en familie te benaderen voor kapitaal, ligt bij sommige ondernemers niet lekker. Bij andere ondernemers dan juist weer wél. Veel van ’s werelds topondernemers geven toe dat ze al vroeg in hun carrière lenen bij hun sociale netwerk. ls er iemand bereid is om jou te helpen, is het een familielid of een goede vriend! 

Do you wonder if you want to risk these relationships ... 

6. Risk capital ...

This is not for everyone. Finding a venture capitalist who shares your vision, or at least believes in your ability to drive your business towards a successful, profitable business, is difficult. 

In addition, venture capital funds want to earn back their investment as quickly as possible, before moving on to the next new start-up.

7. Apply for a loan from the bank

A Non-profit micro loan for example. A great option for financing a startup. Microloans are generally available between € 500 and € 50,000. 

The advantages of this option are that you retain full equity and that you can receive a large amount. The disadvantage is that you have to pay everything back, plus interest ...

Are you planning to apply for a loan? When applying for a loan, you must be able to show details to the lender. Without businessplan you will not be taken seriously, and your application will probably not be processed.

It is very useful to go through your business plan with a specialist. Holland Startup guides, coaches and finances young entrepreneurs to turn ideas into successful startups. We enable young entrepreneurs to shape our society! Are you in?

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