Putting together a startup isn’t easy. Building a business from the ground up is complex no matter how you spin it, but one of the hardest things about the process is the search for funding. With thousands of startups coming up every year, startup founders looking for funders have an uphill battle ahead of them.
There’s a lot of good advice out there about getting your startup off the ground. A previous post on the Infobeat blog talked about how to strategize and keep your energy up for the long hard slog of fundraising. And if you’re wondering how to translate that advice into action, don’t worry. Below are five funders that you can apply to start off your fundraising journey.
National Business Incubation Association
If you’re looking for funding, one of your first options should be the National Business Incubation Association (NBIA). Founded in 1985, this nonprofit is an association of business incubators and developers for small businesses.
While funding is definitely available through the NBIA, it mainly gives startups access to shared resources such as consultants, offices, and personnel. To qualify for financing, your startup needs to meet certain criteria according to the incubator you’re applying to. There are also incubators that are specific to special interests, such as women or minority-owned businesses, so look into that as well.
Small Business Administration
Another funding option for startups and small businesses is the Small Business Administration (SBA). The SBA is a U.S. government agency that provides support to small businesses. This can include training, funding, and other resources.
Investment capital through the SBA is coursed through Small Business Investment Companies (SBICs) that are licensed by the SBA. The SBA provides guaranteed funding to these SBICs, which then in turn fund small businesses or startups. Investments from these SBICs come in the form of debt, equity, or both, and applicants are matched up with investors according to certain criteria.
Venture Capital Firms
Given the benefits of venture capital, including capital and connections, it’s pretty easy to understand why many startups turn to them for funding. Acquiring that funding isn’t always easy, however. Venture capital firms typically use focused criteria to determine whether to offer financing, including industry or sector, geography, and development stage of the startup.
Thus, it can be hard to pinpoint which firm to turn to, as that’s entirely dependent on the circumstances of your startup. Forbes has a pretty good guide to understanding the process of venture capital funding, including basic elements like term sheets, valuation, and much more.
Upstart
If you have a low credit score, chances are you’re finding it difficult to get a loan approved. Luckily, there are options available for entrepreneurs with low credit scores, and AskMoney’s guide to Upstart is a good introduction to one of them. Upstart is an AI-based lending platform that works with banks to streamline the lending process in the hope of making it more equitable.
Upstart doesn’t just look at your credit score— it also looks at factors such as your employment history, education, and more to get a holistic picture of you as a borrower. If your application is approved, Upstart can then underwrite your personal loan, which can range anywhere from $1,000 to $50,000.
AngelPad
One of the most famous accelerator programs in the U.S., AngelPad has seen the birth and rise of several strong startups. Launched by former Google employees, AngelPad has worked with over 150 companies through a weeks-long program that includes mentorship, brainstorming, fundraising, and more.
While not a funder or investor in the strictest sense of the term, AngelPad is one way to get your startup up and running. Through the rigorous program, you end up getting a better grasp of what you want to do with your business. During that period, you can also start fundraising. If it doesn’t work out during the program, you can at least come away with a stronger business plan to show potential investors.
