3 Ways To Raise Startup Capital Fast

how to raise startup capital new business funding

You have got the million-dollar idea, a solid business plan, and the drive to pull it off! But what about the startup capital? Don't worry, there will be many speed bumps along the way. But that won't stop you! 

So what are some of the best ways to raise startup capital? Aside from winning the lottery, it is going to take the help of some savvy investors or money lending institutions. But since you have crunched the numbers and know your business will turn a profit, read on to learn of a few sources for generating startup capital. 


Crowdsourcing your start up capital is extremely hot right now. And why shouldn't it be? You are putting yourself out there publicly, making your pitch, and getting your friends and family to spread the word! 

With crowdsourcing, the idea is to get enough individuals to pitch in so that you reach your goal. Usually, the business will offer a product or service in return for the contribution, so be prepared to deliver on that once your goal is met. 

In order to have a successful crowdfunding campaign, you have to create an excellent product or service, a compelling video to grasp your "investors," and a ton of internet marketing to draw people into your crowdfunding site. 

Angel Investors 

Another great avenue for generating startup capital is thorough angel investors. An angel investor is someone who is independently wealthy, usually an entrepreneur who has sold their successful business and looking towards new innovative businesses to invest in. They are usually risk-takers and enter in at the ground floor. 

As a new business, don't have to have a proven track record in order to attract angel investors, but you do have to have a solid business plan in order to generate interest. Angel investors are usually looking for a high return on their investment and will be willing to take greater risks to deliver capital than other sources of startup money. 

Networking is a great way to connect with angel investors, but today they are more accessible through online institutions. 

Small Business Loan 

Getting a small business loan from a bank or credit union is a more traditional approach for generating startup capital. Within this avenue, there are multiple types of small business loans available. Capital can come in the form of a business credit card, business line of credit, personal loans, or a mortgage refinancing. 

This type of resource is great for someone with a solid credit history. If you don't have a great credit score, get in touch with a reputable lender or finance professional who is an expert at fixing bad credit. 

This startup capital avenue will ensure you have full control of your business and do not have to take direction from any investor. 

What Is the Best Way to Raise Startup Capital? 

That really depends on your business, your network, and credit history. No matter which route you take, you will need to have a solid business plan to back up your innovative idea. Ultimately, banks, investors, and individual contributors will only give their money to someone they believe in. That is how your new business can get funded fast!

If you found this article on raising startup capital helpful, check out the rest of our blog for more great info! We publish a variety of helpful articles to help you find funding for your new business!

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