Where do I go to raise capital if my business is too early-stage for the First Angel Network Association?
Raising capital for an early-stage or start-up business is difficult at best. One trait of successful entrepreneurs is being resourceful. Tapping friends, family and others that you know through a personal or professional relationship and may be willing to bet on you (not necessarily your business plan) is a common source of start-up capital. These funds along with investments by the founders demonstrate a personal commitment to making the business a success. Negotiating credit from suppliers and advanced payments from customers helps cash flow and provides third-party validation of a company’s business model. Corporate investors and strategic partners also provide this validation. Convincing key employees and contractors to work for options instead of salary or cash is another common technique. A word of caution: get good legal counsel before you solicit any outside investment to avoid the many pitfalls in securities, employment and intellectual property law.
