How important funding is for an early stage venture

Venture capitalists are one form of early stage investors that each and every startup venture requires. Many times, the portrayal of different sources of funding in case of starting small business is done in the light of venture funding. For this reason it is advisable that you should get firsthand information on the venture funding to be able to start your own business.

You need to take care not only of the early stage investments, but also ensure that the firm does not incur huge losses due to loss of equity. An early stage venture can avail noteworthy number funding sources if the business deals in high-tech electronic gadgets or other IT related fields. A startup venture can be recommended to find an apt small business funding so that pre-product research can be started as soon as possible. Hence you need to take your time, think over the best solution possible for the funding and make a decision in time for gathering the requisite grants.

The process to accumulating startup venture capital may consume time, but is a reliable and trusted way to raise money from the government funding facility. Also other finance institutes such as SBIRs make available a grant for $100,000 for a six month phase and other grants of 500,000 to 750,000 dollars for another time line. The business requires small fund infusion of liquid cash which can be easily availed from with the help of an SBA loan as a part of good credit for the startup venture.

Ways to fund your startup business

When a person sets out to start his business, he requires a major help in the monetary form for starting small business. But many times the tension of other issues is so much that they forget to search about the small business funding sources which are available readily. Hence for you to start your business of interest with a potential business vision, idea or project, money as a source of funding is imperative.

Such monetary sources for the early stage venture can be categorized into two main types.

• Bootstrapping: The process of Bootstrapping can be defined as usage of your own finances from the personal savings to second mortgages and starting the venture alone. Early resources in case of Bootstrapping are those of founders’ capital, savings and credit cards. Other kind of bootstrapping resources include sales revenue, second mortgage and venture leasing. In addition, for a startup venture the later sources of bootstrapping include asset backed lending / accounts, lines of credit, receivable factoring SBA loans and government grants.
• Equity Financing: Whereas equity financing is defined as when you decide on business partners and divide the percentage of the ownership in exchange of requisite capital. Some of the early as well as later stage sources in such small business funding are those of corporate venture funds, investment banks, private equity firms, mezzanine financing firms and public markets.

Hence, such important information can act as a successful source in funding a startup venture business without any hurdles.