<h2><strong>How Do You Survive Your First Year As a Startup?</strong></h2><p>You have taken the first step. You have decided to follow your passion and start your own business. But it is well known that a company's first year of operation is the most challenging. Creating your own company can be exciting but involves significant risk. You will grow as a person, make mistakes, and achieve great success.</p><p>Starting a company from the beginning takes extensive preparation, planning, and time management skills to keep track of the many moving parts involved in making a profit, paying bills, advertising, producing goods, and selling them. New businesses will always start, and you want yours to be one of the survivors.&nbsp;</p><p>However, how can you survive your first year as a startup? How can you be a startup of the year?</p><p><strong>That's why we compiled the best 11 advices to help your startup succeed in its first year and beyond</strong>.</p><h2><strong>1)Have a Business Plan</strong></h2><p>To begin and grow your company successfully, you need to have a well-thought-out business plan, including your goals, target market, products and prices, funding strategy, top priorities, and marketing and sales initiatives.</p><p>The time and effort you put into developing a great business plan will pay off in the long run, whether you ask for finance or present to investors.</p><h2><strong>2)Set Long-Term Goals</strong></h2><p>Short-term thinking is one of the worst things a business owner can do. Most people who are successful in business have long-term goals in mind when they start a new venture, according to statistics</p><p>Do not start a business if you want something right away or if you want to make money in the first or second year. It is unlikely to happen. You should expect to lose money in your first and second years. The first two years are challenging. But most of the bumps and kinks have been worked out by your third and fourth years.</p><h2><strong>3)Determine How You Will Fund Your Business</strong></h2><p>Money is the most crucial part of a business, of course! The search for<a href="https://eurokick.com/blog/basics-of-venture-capital-for-your-business"> venture capital</a> is frequently seen as a company's first and most vital step. However, you can support your company in several ways: using savings, part-time jobs, money from friends and family, loans,&nbsp;<a href="https://eurokick.com/blog/angel-investors-what-is-angel-investing-and-how-to-find">angel investors</a>, and customers. Think carefully about the best choice for you, your co-founders, and your company.</p><p>One of the main reasons why small business owners fail is that they do not keep track of their money. Really:</p><p>80% of small businesses fail because they can not make enough money, according to estimations.</p><p>Set up checkpoints for your financial goals for the year so you can stay on track. Watch your cash flow and when you get paid. Ideally, your income should always be more than what you spend, and it is also essential to always have some extra money in case something goes wrong. Getting your finances under control can be scary, so get help whenever you can.</p><p><strong>You should also consider hiring a freelance financial advisor or manager to handle this critical part of your business.</strong></p><p><strong>Top Tip</strong>: You always need capital to hit the ground running as a brand-new startup. Read our guides<a href="https://eurokick.com/blog/how-to-find-investors-for-small-business">, 6 Ways To Find Investors And Raise Millions For Small Business</a>, and<a href="https://eurokick.com/blog/basics-of-venture-capital-for-your-business"> The Basics of Venture Capital for Your Business</a> to learn more about investment for your startup.</p><h2><strong>4)Be As Organized As Possible.</strong></h2><p>Many entrepreneurs have failed because they did not have enough discipline. They have a great idea, but they do not put in the effort to make it happen. Learn about your money and keep it in order. If you see something wrong, fix it. If you keep trying, you will get something out of it eventually.</p><p>In addition, during the first year in business, you should expect a heavy workload filled with meetings, specifications, strategies, calls, projects, travel, conferences, and more meetings. Avoid the common mistake of depending on a Notepad software, some Sticky Notes, and your memory to keep everything in order.</p><p>Try talking to other company owners and entrepreneurs to learn how they manage their time. Identify and use a strategy that provides intended outcomes. Maintain a daily check-in and update schedule.</p><h2><strong>5)Set Clear Expectations For Everyone</strong></h2><p>Maintaining consistent expectations is essential when interacting with customers, business associates, or employees.</p><p>A clear after-sale plan can reassure your customers and encourage repeat business. All of your workers need to start with a clear understanding of their role and the expectations you have of them that are in line with the overall business mission.</p><p>Resentment over underperformance or overreaching can quickly put an end to productive cooperation. It is essential to have a mutually agreed-upon job description.</p><h2><strong>6)Follow The Trends&nbsp;</strong>&nbsp;</h2><p>Promotional efforts on social media platforms, especially in the form of video, are on the rise. In today's digital environment, video material, particularly live video, is the most effective way to reach your intended audience. Twitter, Facebook, YouTube, Snapchat, and Tumblr all provide live broadcasting and are rather popular. 90% of all internet traffic will be connected to video by 2023, and Facebook live streaming is expected to have a viewership three times that of regular videos.</p><p>Surprisingly, the boom in augmented reality has also led to an uptick in interactive video content. Although AR is still a relatively new and pricey marketing tactic, it offers a creative and exciting method to connect with your audience.</p><p>Using video content in your marketing plan to reach your audience will be crucial in the first year of your business's existence if you want to remain competitive and successful.</p><h2><strong>7)Be Flexible and Adaptable</strong></h2><p>A business plan is an evolving document that should be reviewed often; it is vital to be prepared to rewrite sections at any moment. Avoid being too dogmatic about your next move. You need the flexibility to respond quickly and effectively to market shifts and other challenges you may face. If you can see choppy waters ahead, you should not blindly sail into them. Avoid capsizing by changing direction.</p><p>In the beginning stages of any company, there are several potential courses of action. You can waste your time if the company's stated purpose changes whenever the wind blows or a new and appealing item comes into view. Agility permits you to keep going when things are not working, even if that means making adjustments along the way.&nbsp;</p><p>Frequently reevaluate your purpose, and if there is compelling evidence to support a course correction, do so.</p><h2><strong>8)Make Your Finances a Priority</strong></h2><p>Do not mix up income and profit.</p><p>It's not the same thing to operate a business that just brings in money as it is to lead a company that really profits.</p><p>It is easy to think that bringing in cash is the same as making money. One thing is to make money. But your business could be losing money when you add up the cost of labor, services, office rent, and your salary.</p><p>To put your business in a good position for long-term, profitable growth, make a chart of your current costs and how much you charge. This will help you determine your net profit margins, which should be between 15% and 30%. With this information, you can change your pricing, volume strategy, and production costs to ensure you have a healthy profit margin and can keep growing.</p><p>Also Read:&nbsp;<a href="https://eurokick.com/blog/how-to-calculate-roi-for-startup">How to Calculate the Return on Investment for Your Startup</a></p><h2><strong>9)Take Risks</strong></h2><p>Making a decision and then acting on it is the most thrilling element of being an entrepreneur. Testing the waters to see whether anything sticks is always exhilarating, and the novelty of a successful experiment never wears off.</p><p>Do not let the fear of falling short hold you back. The decision to launch your company was fraught with danger, yet you went ahead and did it anyway. You should not let the extra risks slow you down. Find a workaround and keep going if something is not working.</p><h2><strong>10)Connect With People</strong></h2><p>In general, the more people you know, the better off you are. Anyone could be a partner, customer, inspiration, or sounding board. Talk to people who have started their businesses or are experts in your field. The more people you talk to, the more chances you will get and the more people you will have on your side when you need them. Here are what you can do to connect with people in your field:</p><ul><li>Join trade shows and conferences in your field to meet other entrepreneurs and experts.</li><li>LinkedIn and Quora are websites that can help you develop your knowledge and learn from others.</li></ul><p>Respect other people's time, but do not hesitate to ask for meetings. When you get together, ask questions and give people a chance to talk about themselves. Always pay for the meal and send a thank-you note afterward.&nbsp;</p><p>The most important thing to remember about networking is the golden rule: The more you give, the more people want to give back.</p><h2><strong>11)Set Up a Company Culture Of Collaboration</strong></h2><p>The success of a startup depends a lot on how well the people on the team can work together. This is why new startups need to create a culture that does not allow the five problems that can happen on a team:</p><ul><li>Lack of trust</li><li>Fear of conflict</li><li>Lack of commitment</li><li>Avoiding accountability</li><li>Not paying attention to results</li></ul><p>A great way to do this is to lead with emotional intelligence.</p><h2><strong>Bottom Line</strong></h2><p>Starting a new business is challenging. If starting a business was easy, everyone would do it and succeed.&nbsp;</p><p>Being a business owner is hard work. Many entrepreneurs quit early on because they failed or were afraid of failing.&nbsp;<strong>You can be the owner of "the startup of the year" by applying the strategies above to your business and surviving your startup in the first year.</strong></p><p>If you are just getting your business off the ground and are looking for investors, Eurokick can provide you with the funds you need and guide you in developing your business.</p><p>We can help you turn your idea into a business and turn potential into a success story!</p><p><a href="https://eurokick.com/contact">Get in touch with us</a> for the new stories!</p><h2><strong>References:</strong></h2><p>https://www.entrepreneur.com/leadership/a-quick-guide-to-surviving-year-1-as-an-entrepreneur/271335</p><p>https://www.tide.co/blog/business-tips/how-to-make-your-first-year-in-business-a-success/</p><p>https://www.forbes.com/sites/forbescoachescouncil/2019/05/07/14-strategies-to-help-your-startup-survive-its-first-year/?sh=22d282a27d21</p><p>https://www.entrepreneur.com/starting-a-business/7-ways-to-survive-and-thrive-at-a-startup/228737</p>

11 Tips to Survive Your Startup's First Year | Eurokick

<h2><strong>Startup Investing Risks</strong></h2><p>There has been a dramatic shift in the corporate landscape since the beginning of the century, with many more startups appearing than ever before. The proliferation of them all across the globe has helped uncover answers to even the most trivial human problems. The startup culture has fully slammed the reset button on the established corporate norms. The finer points of investing have also adapted to this new reality.</p><p>Like investing in the stock market, funding new businesses is common. It's a tightrope to walk, but it's becoming easier to do every day. If an investor puts money into a business, they should see a healthy return on their money. As only a small percentage of startups are now profitable, it is crucial to exercise caution when investing in them so as to avoid a complete loss of capital.</p><p>There are many ways to find an investor. If you are interested, we recommend you to read our article,<a href="https://eurokick.com/blog/how-to-find-investors-for-small-business"> 6 ways to find investors and raise millions for small business</a>, where we mentioned some of them.</p><p>In reality, only a small percentage of new businesses ever reach the point of Initial Public Offering (IPO). Therefore, the stakes are very high since the investor might either become wealthy (with returns of up to a thousand times the initial investment) or suffer a total loss. Some of the risks of funding startups will be discussed in this article.</p><p>Let's look at the challenges of investing in startups:</p><h2><strong>What Are the Risks of Startup Investing?</strong></h2><p>Investing in new businesses is, without a doubt, a great way to increase one's potential for financial gain. However, there is no guarantee that the investment will provide a positive return.&nbsp;</p><p>The following is a list of some of the dangers associated with investing in new businesses:</p><h2><strong>Unanticipated Complications</strong></h2><p>The potential for market problems is a significant threat to startup investors. If the concepts are new and the execution is flawless, every startup succeeds and becomes a fully functional firm. However, there is always the potential that reality may defy expectations. The economy is complex and volatile and may provide a wide range of difficulties.</p><p>A wise decision on how much capital should go into each investment is essential to avoid the financial pitfalls that might lead an investor down the road to insolvency if they put money into a business. It's wise to have a fallback strategy in place in case your first one doesn't pan out. It will be easier to comprehend the causes of the company's failure if you have a firm grasp of the ins and outs of startups.</p><h3>A wrong valuation can lead to many problems</h3><p>When you invest in a startup, you might end up paying too much for your money, which can limit how much you can make in the end. This risk is lessened by the first step of looking at every factor that has affected the startup's value.</p><p>In the early stages of a startup, it's impossible to know precisely what the actual value is. However, the more you look into the numbers, the more likely it is that your estimate of the entrepreneur's perceived value is accurate, and the better decision you can make.</p><h2><strong>Risk of Competition</strong></h2><p>Every new business has to deal with competition, either directly or indirectly. Some of these competitors may have more money than the new business. One or more of the company's competitors could offer similar services at much lower prices. This would pressure the company to lower the prices it could charge for its services. If the company can't charge the prices it planned to charge for its services, it could greatly impact how well it does business and how much money it has.</p><h2><strong>Revenue Risks</strong></h2><p>There is a chance that the company's revenue will be lower than expected since it is still in its beginnings and may have just begun implementing its business strategy. No promises can be made that it will ever turn a profit. It's important to evaluate the chances of profit-making in light of the typical challenges, costs, difficulties, hassles, and setbacks startups face. Because of these unknowns, the corporation may be unable to accomplish its goals.</p><h2><strong>Personnel Risk</strong></h2><p>Putting money into a new company is like betting on its founders. The viability and success of a business hinge in large part on the company's ability to put its plan of action into action. Remember that the firm, including the management, will need salary payments from your investment. Any information the corporation provides about how its profits are spent deserves your close attention. The management team's education and track record are other important factors.</p><h2><strong>Money Flow Problems</strong></h2><p>The lack of ready cash is another key threat to investors in young companies. If you invest in a new company, your money will be locked up for a long time. You will not be able to easily get out of this investment, even if you come to deeply regret making it.</p><h2><strong>Lack of ROI assurance</strong></h2><p>Considering that 90% of businesses fail during the first five years of operation, the risk factor associated with investing in startups is unusually significant. This also implies that investors can't count on a certain rate of return. However, that's not the end of the ROI-related dangers. Liquidity problems might be a threat if they make it take longer than projected to generate a profit. Sometimes, even if there is a profit, there won't be much cash left over after all the bills are paid.</p><h2><strong>Diluted Shares</strong></h2><p>If the company needs more money to help it grow, your share could be cut down. Also, as more investors join, you might have less control over the business. This is especially hard for angel investors who want to be involved in the business's direction but don't want to be involved in future investment rounds.</p><p>Even though taking on extra capital may not have been planned initially, the most successful investors question the startup's plans for future capital injections and spending. They also plan what they will do if there are more investment rounds.</p><p>You can also read our article about&nbsp;<a href="https://eurokick.com/blog/angel-investors-what-is-angel-investing-and-how-to-find">angel investing and how to find an angel investor</a>.</p><h3>Growing teams might produce conflict</h3><p>Growing businesses can put a lot of stress on business relationships. A team of managers that doesn't work well together won't be successful.</p><p>From the first time they meet the startup, potential investors look closely at the management team to see if it has what it takes to succeed. Much attention should be paid to their skills, experience, passion, and ability to be flexible as a group and as individuals. However, relationships and teamwork should always be kept in mind, and everyone should start wanting to achieve the same goal.</p><h2><strong>Market Demand Risk</strong></h2><p>Despite the company's optimism about future demand, there can be no guarantee that consumers will well receive its items. In addition, consumers may not receive the company's goods well if other businesses provide similar but more appealing items. In such a case, the company's operations and the financial situation might take a significant hit, and it would be unable to accomplish its objectives.</p><h3>Underestimating the market impact challenge</h3><p>Business failure is possible if the company fails to properly assess the difficulty of penetrating its intended market. Alternately, its capital needs may increase as it pursues consumers who prove more elusive than first anticipated.</p><p>A smart investor will avoid this danger by studying the startup's strategy in depth before making a financial commitment. Investors want to see proof that the company has the resources, strategies, and offerings to attract the clientele necessary for rapid expansion, intending to ensure that the lifetime value of its clientele far exceeds the cost of acquiring each new client.</p><h2><strong>Scams</strong></h2><p>When money is exchanged, dishonesty is always a possibility. Equity investments in new companies are no exception. Startup investments are risky if you don't see any red flags that could indicate wrongdoing for the firm you're investing in.</p><h2><strong>Conclusion</strong></h2><p>Investing in a startup is synonymous with taking a chance on a potentially lucrative but risky venture. Numerous variables will determine the venture's success or failure, including the originality of the company's ideas, the quality of the plan's execution, the level of customer happiness, the attainment of goals, the receipt of future funding, etc. Investors may only protect themselves if they investigate the company thoroughly and stay current on its development. Don't put all your money into one business to spread the risk and ensure the investor doesn't lose too much.</p><p>If you want to learn more about venture capital, you can read our article on&nbsp;<a href="https://eurokick.com/blog/basics-of-venture-capital-for-your-business">the basics of venture capital</a>.</p><p>The entire exercise of startup investment has a far greater impact on society than just the monetary ones, and it can alter the course of a household and perhaps a nation. Therefore, it's essential to do your homework and make wise investments.</p><p>Eurokick is a venture capital firm that invests in and consults on high-fidelity, innovative technology startups.</p><p>Eurokick's experienced professionals analyze all the risks and invest in globally scalable technology startups.</p><p>Are you interested in funding startups? For more detailed information, feel free to<a href="https://eurokick.com/contact"> contact us</a>!</p><h3><strong>Source and For Extra Readings</strong></h3><p>https://www.fellowfunders.es/en/riesgos-invertir/</p><p>https://www.verve.vc/info-startup-investing</p><p>https://www.seedinvest.com/blog/angel-investing/investor-risks</p>

The Risks of Investing in StartUps ⚠️ Eurokick Startup Investing

<h2><strong>How to Calculate ROI for a Startup</strong></h2><p><strong>Return on investment is a typical business concept for calculating the financial benefits of an investment.</strong> To measure the performance of a business, managers and executives often calculate the return on investment (ROI). This value can be used to define anything from a monetary return to an efficiency ratio and is typically expressed as a percentage or a ratio.&nbsp;</p><p>In this article, we will go through the definition of Return on Investment, the importance and benefits of ROI calculations, and teach you how to calculate ROI for your startup.</p><h2><strong>What is ROI?</strong></h2><p><strong>Return on investment is a performance measure that can be used to evaluate the effectiveness or profitability of an investment or compare the efficacy of several different investments.&nbsp;</strong>The return on investment, or ROI, is an attempt to directly evaluate the amount of return on a specific investment in relation to the cost of the investment.</p><p>A company can measure<strong> the profitability of any expenditure by calculating the return on investment.</strong> Buying pens or fixing an employee's desk are expenses that may not have a direct or monetary return on investment (ROI), but they are still part of a more significant investment. Spending money on a graphic designer to make commercials, a photographer to capture headshots, or a web developer to redesign the company's website are all investments with the potential for a return.</p><p>Return on investment (ROI) is a standard metric to assess a project's viability.&nbsp;<a href="https://eurokick.com/blog/angel-investors-what-is-angel-investing-and-how-to-find">An angel investor</a>, for instance, might want to calculate the expected return on their investment before putting money into a company. Divide the annual income or profit by the initial or current investment to estimate the return on investment (ROI).</p><h2><strong>What is ROI used for?</strong></h2><p><strong>The return on investment (ROI) metric can assess numerous investment choices by contrasting them to their starting prices. Calculations of return on investment (ROI) are frequently used by businesses when considering previous or prospective investments.</strong></p><p>Individuals can analyze their investments and compare one investment to another, whether a stock holding or a financial stake in a small firm, by calculating the return on investment (ROI) and comparing the two.</p><p>Sometimes, businesses will employ a project's return on investment (ROI) as a metric of its performance. Before committing to an advertising campaign, a business owner will want to know what kind of return they can expect on their investment. A company's return on investment is considered positive if the money earned is greater than the sum spent.</p><p>When calculating annualized ROI, the average yearly return on investment realized during the investment term is what you're after. This is useful because the return on investment (ROI) doesn't account for the time spent holding an investment when calculating ROI. The rate of return on an annualized basis is helpful for comparing the results of various investments across different time frames.</p><h2><strong>What Are Examples of ROI Calculations?</strong></h2><p>Businesses might encounter difficulties calculating the investment amounts for each part of the ROI equation.</p><p>Considerable investment in new computers, for instance, has several deployment expenses that must be calculated and accounted for. The company must calculate the total cost of ownership, which includes the purchase price, any applicable taxes and shipping fees, any consultation or support fees paid, and the cost of initial installation and ongoing upkeep.</p><p>After that, the company would need to determine its net profit for a specified time frame. Hard monetary gains from enhanced efficiency and decreased upkeep expenses relative to older computer systems may contribute to these bottom-line gains.</p><p>Thus, a company can compare the return on investment (ROI) of two different computer systems by factoring in upfront expenses and long-term benefits. Which of these two computers, then, is the better financial bet?</p><p>At the end of the specified period, the company may use actual data for the total net income and the entire investment cost to determine the ROI. The computer implementation can be gauged by comparing the actual and predicted ROI.</p><h2><strong>What Are the Benefits of ROI?</strong></h2><p>When making decisions for your business, knowing how investments affect your profits and your business is essential and beneficial.</p><p><strong>There are many benefits to calculating ROI for your business</strong>. Let's take a look at some.<br>&nbsp;</p><ul><li>It's easy to figure out how to calculate return on investment. It only requires a few numbers that may easily be found in any set of financial statements or balance sheets. You need a few business metrics, like net profit and the amount of investment required, which will give you a quick idea of your initial investment.<br>&nbsp;</li><li>It's easy to figure out what your ROI means. If the number is positive, you made money on this investment. If the number is negative, it means you lost money. ROI is easy to understand, even for people who aren't accountants. Because it is so widely used and so simple to calculate, it enables more accurate comparisons between various companies regarding their investment returns. This makes the calculation results a valuable metric to use when talking to investors.<br>&nbsp;</li><li>ROI can be worked out for several different investments or your business. This lets you see what parts of your business have been helped by a particular investment, like a marketing campaign that brought in more money or a second location that helped you sell more. As we mentioned, it is a metric used to measure the success of an organization's financial decisions for a specific department or division. The improved metric will help determine which businesses or teams are the most profitable.</li></ul><h2><strong>How Do You Calculate ROI?</strong></h2><p>For big companies, figuring out ROI can be a difficult task. But the process is easy for people who own small businesses.</p><p>For example,<strong> to determine the return on your first business investment, you need to know how much you put into the business and, if you have any, how much long-term debt you have now.&nbsp;</strong>You will also need to know how much money you made after taxes for the year. All this information is in your accounting software, your spreadsheet, or your accounting journals.</p><p>There are several ways to figure out the ROI. Most people use net income divided by the total cost of the investment =<strong> Net income / Cost of investment x 100.</strong></p><p>Here is an example of how a business might calculate its return on investment.</p><p>Let's assume that Joel has an e-commerce business. He runs an e-commerce business that sells dog-related products. He wants to raise awareness and boost sales before the holidays, so he buys some social media ads. He spent a total of $2,000 on ads on social media sites to get people to visit his site during the holidays.&nbsp;</p><p>After the end of the holiday shopping season, Joel does the math on his net profit and discovers that the online store he owns has made $10,000 more money than it did during the same time the previous year. After that, he can calculate the advertising's return on investment using the following formula:</p><p><strong>ROI = (10,000 / $2,000) x 100 = 500%</strong></p><p>This indicates that Joel made five dollars more in net profit for every dollar he invested in advertisements. He can now start to budget for increased expenditure for the upcoming holiday season now that he has seen such a high return on investment (ROI).</p><h2><strong>Why Is ROI Important for Your Business?</strong></h2><p>Making smart financial decisions is essential for the success of your business. Your return on investment (ROI) is a crucial metric that can help you compare different investment strategies and determine which will make you the most money.</p><p>You can use this metric to make business decisions like investing in a new business or buying a new property to make room for growth.</p><p>You can A/B test ways to invest, like on social media platforms. This could be a comparison between Meta and Instagram in terms of your return on investment. For example, you could put the same amount of money into advertisements on each platform, which may give you a better return.</p><p>By comparing and evaluating this metric across different investment channels, you can make better financial decisions, get the best return, and grow your business.</p><h2><strong>How to Increase Your ROI</strong></h2><p>Depending on what kind of investment you want to make, the best way to increase returns will vary. But there is a way you can try before investing to increase your chances of getting a high return on your money. Eurokick is the solution!</p><p>Eurokick is ready to help your startup calculate your return on investment and increase your ROI. Eurokick supports and monitors your startup in every way possible.<br><br><a href="https://eurokick.com/contact">Contact us</a> and get more information now!</p>

How to Calculate the Return on Investment for Your Startup

<p>A startup's genesis is often found in a novel and potentially disruptive concept. Of course, not every good concept ends up in a successful company, and those who don't achieve their goals are quickly eliminated from the system. The startup idea, however, has to be validated to ensure that it can potentially turn a profit for the entrepreneur. The startup usually has to pay the expenses for this validation.</p><p>This is when pre-seed funding comes into play.</p><p>In this article, we talk about pre-seed funding. Here, you'll find the answers to questions like:</p><ul><li>What is pre-seed funding? How does it work?</li><li>What are the types of pre-seed funding?</li><li>Why is pre-seed funding important for startups?</li><li>How is pre-seed funding different from seed funding?</li><li>When should you get funding before you start?</li></ul><h2><strong>The Definition of Pre Seed Funding</strong></h2><p>In the pre-seed investment round, investors offer a startup firm funds (often up to $2 million) to develop its product in exchange for stock in the company. Initial funding, or "pre-seed money," is essential for laying the groundwork for launching a firm and establishing its viability for its founders. To set this foundation, we need to:</p><p>Customers, demand, and the proposed service are studied and analyzed via surveys to ensure that our theories are correct.</p><p>Recruiting essential people to work on developing the concept into a marketable product or service, such as a chief technical officer, chief financial officer, etc.</p><p>Securing the company's future by registering essential intellectual property such as patents, trademarks, and designs.</p><p>The amount raised during a pre-seed investment round is often not significant enough to be counted as a true seed round. However, for other entrepreneurs, this is a necessary injection of funding to lay the groundwork for something revolutionary that has the potential to revolutionize the whole sector.</p><h2><strong>How Does it Work?</strong></h2><p>You should follow these guidelines while launching your pre-seed funding campaign for your small company.</p><h3>Finding the Right Investors</h3><p>Finding the most significant and appropriate investor for your business is essential. Numerous people are looking for new companies to spend their money and effort on. These investors must be committed to standing by your side and your business through thick and thin.</p><p>There are many different types of investors, including:</p><ul><li><a href="https://eurokick.com/blog/angel-investors-what-is-angel-investing-and-how-to-find">&nbsp;Angel Investors</a> who are self-reliant small investors</li><li>&nbsp;Accelerator Programs need validation from the startup community before investing.</li><li>&nbsp;<a href="https://eurokick.com/blog/basics-of-venture-capital-for-your-business">Venture Capital Funds</a>, which are large institutional investors, can give massive amounts of investment.</li></ul><h3>Impress The Investors</h3><p>To attract investors, you need to demonstrate that you know what you're doing and are comfortable discussing every aspect of your business. You must convince them you have an excellent vision for the company's future.</p><p><strong>Teamwork.</strong> You need a group of reliable individuals who share your values and objectives.&nbsp;</p><p>Skilled workers who can contribute significantly to the success of your business. These will demonstrate your company's value to potential investors.</p><p><strong>Check the investor's background.</strong> Investors will be more likely to put their money in your firm if they are impressed by your background and the successes you've had in your personal life.</p><h2><strong>The Importance of Pre-seed Funding for Startups</strong></h2><p>You may be thinking, “Why to bother asking for pre-seed investment if getting it is so difficult?”</p><p>To turn a profit, startups need to multiply quickly. Most new businesses struggle because they lack the capital to compete with well-established ones. Pre-seed investment is crucial for new companies since most funds will be used to establish a solid foundation.</p><p>Considering the whole product development process is crucial, and it is essential to take a prototype and make a mass-produced version. It would help if you looked for pre-seed capital for your startup to hire new employees, locate an office, and advertise to your first few consumers. You will have a tough time making ends meet without this money.</p><p>The need for startup capital is not universal, and Pre-seed funding is the most effective in sectors where the initial investment is sizable. Tech firms focusing on hardware production, for instance, would need more financial resources than software firms planning to create apps.</p><p>Raising capital is difficult for new businesses, and getting pre-seed funding is significantly more challenging since you have no track record for your claims. Securing the backing of pre-seed investors will be a lengthy, difficult, and complicated process, but it can turbocharge a company's development.</p><h2><strong>Types of Pre-seed Funding</strong></h2><p>Bootstrapping is the initial option when trying to get pre-seed funding. When a startup company can no longer pay its way, it often looks for funding elsewhere. Let's look at the types of Pre-seed funding:&nbsp;</p><h3>Family &amp; Friends</h3><p>Pre-seed funding often comes from friends and family who have faith in the founders more than the concept itself and are willing to invest a small amount of money. Those who expect huge profits from investing in startups in the startup stage without considering the possibility that they would get nothing are fools.</p><h3>Pre-seed VC funds</h3><p>VC firms often provide equity funding for businesses in the Series A round. However, pre-seed VC funds can do so as well. However, prominent VC firms have recently been allocating resources into pre-seed rounds to access superior prospects later in a startup's life cycle.</p><h3>Incubators</h3><p>Business incubators are charitable organizations that help startups get off the ground. They have an innovative bent and aid young companies in developing their business plans. They provide support, a location to work from, and connections to other professionals. There is no set duration, and it may continue for many years, giving a firm the time to develop a sustainable business strategy. In most cases, they will not need a large amount of initial capital.</p><h3>Angel Investors</h3><p>Angel investors are wealthy people who invest their money in a company for a stake in the business. Typically, their investments range in size from $25,000 to $100,000. Moreover, as highly accomplished businesspeople, they can connect you to a vast resource of knowledge and information.</p><p>Check out our latest article about&nbsp;<a href="https://eurokick.com/blog/angel-investors-what-is-angel-investing-and-how-to-find">angel investors</a>.</p><h3>Crowdfunding</h3><p>The term "crowdfunding" refers to soliciting monetary contributions from many people over the Internet. Here, the firm may reach many potential backers and benefit from the feedback of thousands of customers who can point out areas for improvement. Equity-based, rewards-based, donation-based, and debt-based crowdfunding are all viable options. Reward-based crowdfunding is the most applicable for the pre-seed round since it does not require an existing company or product.</p><h2><strong>Pre-seed vs. Seed Funding: What's the Difference?</strong></h2><p>Farming is a good model for how startup funding rounds work. In the pre-seed stage, the founder sets the foundation for planting the seed. On the other hand, the seed stage is when the founder plants the idea and turns it into a business.</p><p>The main difference between pre-seed and seed funding is that pre-seed happens before the first "official" funding round and at the beginning of a company's life. In the past, the seed or series of A funding rounds was the first time a startup company got money from formal investors or a venture capital firm. Pre-seed venture capital is more common and is seen as a total round of funding.</p><p>During the pre-seed funding round, startups need to show that they are meeting a need in the market that no other business can encounter. Next, the goal of the seed or series A funding round is to show that the product or service is a good fit for the market.</p><p>To clarify this concept further, pre-seed venture capital investments are money that is raised to prepare for future possibilities to raise money. Pre-seed happens at the beginning of early-stage product development, while seed startups in the seed funding round should have already proven their value proposition.</p><p>If you want to get information about&nbsp;<a href="https://eurokick.com/blog/what-is-seed-funding">seed funding</a>, you can visit this blog.</p><h2><strong>When Should You Start Raising Pre-seed Funding?</strong></h2><p>"Right place, right time" is a phrase that every business owner knows is important. You must understand that your new business is ready to seek funds. Don't forget that investors meet thousands of new business owners each year. If you don't have everything you need, you'll be turned away right away.</p><p>Any time is good for pre-seed funding during the first 12 to 18 months of a company's life. This is because operating capital can be hard to come by when a company is just starting. A startup may need pre-seed funding for a variety of reasons.</p><h3>Starting-Up Costs</h3><p>Pre-seed funding is good if the company hasn't released an MVP and needs more money for day-to-day operations. Even though an MVP or clearly defined revenue streams are beneficial, they are not required for firms to get funding in this round.</p><h3>For New Employees</h3><p>Any business that wants to do well needs to hire people with skills. In the early stages of a startup, when you need a viable product as soon as possible, you need a core group of experts in the field. Companies need a lot of money to hire the best employees or freelancers.</p><h3>Other Unexpected Problems</h3><p>The business world is tough to predict, and startups' operating costs can suddenly increase because of new rules or regulations. In these cases, a pre-seed round might be needed, especially if the startup hasn't yet reached the critical mass required for a seed round.</p><h2><strong>To Sum Up</strong></h2><p>Reading this essay gives you a clearer picture of what pre-seed is and how it works. Setting achievable goals and having a solid understanding of the benchmarks is essential for a successful pre-seed round. This way, the startups, and the investors can build a solid foundation of mutual trust. Pre-seed venture capital firm's increased focus on investing in startups at an early stage improves the prospects for these companies receiving the funding they need to quickly advance their growth.</p><p>If you have a great idea and need capital to grow your startup, let's check out the&nbsp;<a href="https://eurokick.com/">Eurokick website</a>.</p><p>Eurokick is a venture capital firm based in Turkey that invests in and consults on cutting-edge digital startups with global aspirations and high standards of quality and reliability.</p><p>The Eurokick team is dedicated to taking calculated risks and doing their research. We always keep our partners' best interests in mind and strive to get the most out of every project we launch.&nbsp;<a href="https://eurokick.com/contact">Contact us&nbsp;</a>for pre-seed funding!</p><h2><strong>Source</strong></h2><p>https://about.crunchbase.com/blog/what-is-pre-seed-funding/</p>

Pre Seed Funding for Startups: What Is It & How Does It Work?

<h2><strong>How to Find Investors for Small Business: Top 6 Ways</strong></h2><p>It's a thrilling experience to launch a new company. However, raising capital is crucial to the survival of your startup or small business. Despite the importance of securing early-stage funding for a startup, many first-time business owners lack an understanding of where to look. However, you shouldn't assume that you need to rely solely on savings or a traditional bank loan to get your business off the ground. There are many people who could invest. But you have to figure out which ones will put money into your business.&nbsp;</p><p>Investors who gain a return only if the business succeeds, as well as low-interest loans, can relieve some of the financial pressure. Investors should be actively sought after from the get-go. Don't give up the hunt once you've begun it.</p><p>Need more effective fundraising strategies? In this article, we will go through the top six ways for startups and small businesses to find investors.</p><h2><strong>Private Investors: Angel Investor and Venture Capitalists</strong></h2><p>Angel investors and venture capitalists are the two most common forms of private investment. Commonly, investors will receive equity stakes in the company in exchange for their funding.</p><p>Let's examine the distinction between these two categories of investors.</p><h3><strong>Angel Investor</strong></h3><p>An angel investor is a wealthy individual who has the method, connections, and expert knowledge to significantly contribute to a startup's growth and prosperity. A single angel investor can fund a business entirely on his own. <a href="https://eurokick.com/blog/angel-investors-what-is-angel-investing-and-how-to-find">Angel investors</a>, on the other hand, almost always demand a substantial rate of return. They're also picky about what they put their money into.</p><p>Angel investors are private individuals who put up their own money to back startups. When an angel invests, he becomes a shareholder. Companies like Amazon and Apple got their starts when their founders found an audience with angel investors.</p><p>These investors put money into you with the hope of getting a high return on investment (ROI). They generally choose to play a bigger role in running your startup by asking for advice on how to run it day-to-day.</p><p>So, how do you get an angel investment? Here are some tips:</p><ul><li>You can meet with local investors as much as possible. Attend local startup events, chamber of commerce meetings, and fundraisers.</li><li>There are a number of angel investor networks available on the Internet. The Angel Investment Network is the largest online community of angel investors, with more than 300,000 investors.</li><li>You can talk to successful entrepreneurs in your area. Successful entrepreneurs have money, know how to spot a good business opportunity, and understand what it takes to run a successful business.</li></ul><h3><strong>Venture Capitalists</strong></h3><p>When a company is ready to grow, and potentially branch out into riskier territory, venture capitalists are a necessary component of the team. Investors' money is used rather than the venture capitalist's own.</p><p>While VCs can be helpful to new businesses, they typically invest in established companies that have a track record of success, a strong management team in place, and a clear path to continued growth. That firm is now planning for transformation but is short on capital. It's possible that the company's newest offering will completely alter the market.</p><p>Capital requirements for venture capitalists can be several million dollars, which is significantly more than what angel investors typically put up. In addition, it is anticipated that the ROI will be exceptionally high. Investors from the venture capital industry will have a stake in the company and the same voting rights as angel investors.</p><p>If you want to read our article about <a href="https://eurokick.com/blog/basics-of-venture-capital-for-your-business">The Basics of Venture Capital for Your Business</a>, it is waiting for you here.</p><p>How do you get venture capital? Here are some tips:</p><ul><li>You can look into the VC firms that have funded similar companies. VC firms that have previously backed your rival are not the ones you want to approach. Examine the venture capitalist industry instead.</li><li>You can reach out to them on LinkedIn. LinkedIn has opened up new avenues for venture capital for startups. Make an effort to network with VCs on the site.</li><li>Show up to pitch events. Connecting with private equity firms is facilitated by pitch events, which are highly beneficial for entrepreneurs. Find out if there are any upcoming local or online pitch events. You should still go if only for the networking possibilities, even if you don't have anything to pitch.</li></ul><p>&nbsp;</p><h2><strong>2. Crowdfunding</strong></h2><p>The term "crowdfunding platform" refers to a website that facilitates the process of raising money for a specific purpose, such as a startup business.</p><p>Crowdfunding has the potential to provide the financial backing necessary to bring your product to market or to launch your business, but it also comes with the risk of overwhelming you with orders while you're still getting the hang of things.</p><p>It is important to note that the specifics of how crowdfunding functions will vary depending on the platform you use.</p><p>Social media platforms like Facebook and LinkedIn, along with crowdfunding websites like Kickstarter, GoFundMe, and Indiegogo, allow entrepreneurs to solicit financial backing from a global audience without giving up control of their businesses.</p><p>&nbsp;</p><h2><strong>3. Seek Funding From Family and Friends</strong></h2><p>This could be the least time-consuming and money-consuming method of funding your business. It's important to discuss the requirements of your company with close friends and relatives. Make a decision as to whether or not you want a loan from them, or whether or not you want investment capital. This situation could be simplified with a loan.</p><p>When loved ones put money into your business, they take on some of the rewards and some of the risks. When compared to a loan, an investment may provide a larger sum upfront and does not require monthly repayment. The only way to pay back investors is to make a profit.</p><p>Having loved ones as investors can be a double-edged sword because you'll be bringing personal relationships into the business realm.Their funding's biggest benefit is also its biggest risk. It's not well-established. Your friends and family are not professional investors, so they will not assess you like a business angel would. Also, when people invest money into a business and see that money go down the drain, it can put a strain on the relationship between the people involved.</p><p>&nbsp;</p><h2><strong>4.Talk to Companies or Schools In Your Field.</strong></h2><p>Most likely, you already know people who work in the same field as you do. You could talk to them to see if they know anyone who might be interested in putting money into your business.</p><p>This research process might take a lot of your time since you probably will not find an investor after just one phone call. In fact, you might need to call a lot of people or even go to events for your industry to network. But if you keep looking, you might find that one person who likes your business plan or product enough to put money into it.</p><p>The other option is the schools that offer certificates, diplomas, or degrees in your field. This is because the professors who teach the programs often bring in guest speakers to talk about certain topics. Most of the time, these guests are the best at what they do. Maybe you could ask the professors or someone else in the department to introduce you to these guests on your behalf.</p><p>&nbsp;</p><h2><strong>5. Rely on Your Social Media Community</strong></h2><p>Business owners can benefit from social media. Take the time to build your business's digital footprint on social media, where you can attract investors. Promote your business frequently. Publish and share articles that show your industry knowledge. Respond thoughtfully and positively to others' posts to build your network. Encourage anyone who has used your product or service to post about it online to reach investors.</p><p>Once you have established a digital footprint on social media, use it to attract the attention of potential investors. See if you can use your shared connections to secure an introduction. Engage with potential investors' content, and if you deem it appropriate, initiate a relationship with them.</p><p>There are numerous ways to acquire funding and investors for your company. If one alternative fails, don't give up! Having a successful business requires tenacity. The only way to achieve success is to never allow financial or other obstacles to deter you from pursuing your objective.</p><p>&nbsp;</p><h2><strong>6. Bootstrapping</strong></h2><p>The term "bootstrapping" refers to the method of funding a company with personal funds. Your personal savings may not be enough to fund the entirety of your business, but they can serve as a solid foundation as you seek out additional investments down the road.</p><p>Companies often rely on the founder for initial startup capital because it is challenging for them to raise funds and find business investors during the Idea Stage. While it's true that putting up your own cash is a surefire way to lose it, it also gives you unfettered creative control over your company. When starting out, small businesses have a lot to gain from the bootstrapping strategy.</p><p>Investors are more likely to put money into a small business if they believe the owner has something at stake. They want evidence that you have confidence in your business idea to put up some of your own cash. If you don't have faith in the idea yourself, why should anyone else?</p><p>To avoid going into debt in the event that your startup fails, it's a good idea to use personal savings to fund the company from the start. However, as the business expands, you may find that you can no longer fund it solely from internal resources and will have to seek investment from others.</p><p>&nbsp;</p><h2><strong>Extra Tip: Try Eurokick to Find Investor</strong></h2><p>Getting funds is easier with Eurokick. The only thing you need to do is to have an innovative business and visit&nbsp;<a href="https://eurokick.com/">Eurokick</a>'s website to apply for funding.</p><p>Eurokick is a venture capital company that invests in and consults for high-fidelity, innovative, and globally scalable technology startups.</p><p>Eurokick is a company that supports all innovative and forward-thinking projects and monitors your progress. Eurokick's experienced professionals analyze your current situation and then advise about what you can do to grow your small business.&nbsp;</p><p>If that sounds like a fit for your business,&nbsp;<a href="https://eurokick.com/contact">get in touch with us</a>!</p>

6 Ways To Find Investors And Raise Millions For Small Business

<h2><strong>What is Venture Capital?</strong></h2><p>Venture capital gives funding and technical expertise to entrepreneurs and start-up enterprises, most often but not always in technology-based areas such as ICT, medical sciences, or fintech.</p><p>VC is a type of private equity and a type of financing that investors offer to startups and small businesses that they think will grow in the long run. Investors, investment banks, and other financial institutions are usually where venture capital comes from. But it doesn't always come in the form of money. Sometimes it takes the shape of technical or management skills. Venture capital is usually given to small businesses that have a large amount of growth potential or that have grown quickly and look like they will continue to develop.</p><p>It's a risky investment, but the potential for high returns makes it worth it for those who put their money into it. Venture capital is becoming more popular as a form of funding for new businesses and projects that lack access to financial markets, bank loans, or other debt instruments. For investors, the main downside is that they often obtain a stake in the company and a voice in its decision-making process.<br>&nbsp;</p><h2><strong>Why Is Venture Capital Important?</strong></h2><p>A capitalist economy is based on new ideas and taking risks. But starting a new business is often very risky and expensive. Because of this, businesses often look for money from outside sources to spread the risk of failing. In exchange for taking on this risk by investing in a new business, investors can get equity and voting rights for pennies on the dollar. So, venture capital makes it possible for startups to get going and for founders to realize their dreams.</p><h2><strong>What Is The Difference Between Angel Investment and Venture Capital?</strong></h2><p>Understanding the distinction between angel investors and venture capital investors is essential for making the best future company decisions. Here are the major distinctions between angel and venture capital investing:</p><ul><li>Amounts invested</li></ul><p><a href="https://eurokick.com/blog/angel-investors-what-is-angel-investing-and-how-to-find">Angel investors</a> can fund up to £1 million, while venture capital companies are unlikely to invest less than £1 million. Due to the time and effort required to arrange a VC agreement, it must be worthwhile for the business.</p><p>While the concept of too much investment may seem absurd to cash-strapped entrepreneurs, great funding comes with high expectations, which is a lot of pressure to place on a new firm. You have responsibilities to your investors, and overvaluing your business might have severe long-term ramifications.</p><ul><li>In whom they invest&nbsp;</li></ul><p>Angel investors focus on early-stage enterprises, but venture capital firms are often less reluctant to participate in startups until they have very compelling promise and growth potential, though this is changing as the startup scene continues to flourish. While really interesting companies in critical areas may be able to get VC investment despite having no track record, most firms will need to show that they can achieve.</p><p>On the other hand, venture capitalists invest in both more established companies and startups, depending on the venture capital industry. A venture investor will seek to invest in a start-up with a lot of growth potential and great promise.</p><ul><li>Involvement</li></ul><p>Angel investors might be as involved or uninvolved as you wish. They'll have stock but no board seat, unlike VCs. Agreeing to VC funding implies bringing in additional individuals who can help your firm fulfill its potential. If you're at an early stage, this may be excessive and limit your ability to pivot or shift emphasis.</p><h2><strong>What Is the Difference Between Venture Capital and Private Equity?</strong></h2><p>Private equity and venture capital are sometimes misunderstood since both relate to entities that invest in startups and exit by selling stock funding, such as IPOs. The two forms of finance have very different business practices.<br>&nbsp;</p><p>Private equity and venture capital (VC) invest in various firms, commit varying amounts of money, and claim different percentages of stock.</p><p>A venture capitalist works for a company or firm, while an angel investor works on their own.</p><h2><strong>What Are the Different Stages of Venture Capital Investment?</strong></h2><p>Due to business variations, funding steps might vary. Venture capital funding typically has five stages.</p><h3>Seed Stage&nbsp;</h3><p>Venture capital financing starts at the seed stage when a company is usually just an idea for a product or service that could become a successful business in the future. Most of this stage is spent by entrepreneurs trying to convince investors that their ideas are worth investing in. Seed-stage funding is usually small and is mostly used for things like market research, product development, and business expansion. The main goal is to make a prototype that will attract more investors in future funding rounds.</p><p>You can also read our article about <a href="https://eurokick.com/blog/what-is-seed-funding">seed funding</a>.&nbsp;</p><h3>Startup Phase&nbsp;</h3><p>In the startup stage, firms have finished R&amp;D, created a business plan, and are ready to sell their product or service. At this point, businesses need more funds to fine-tune their goods and services, increase their staff, and complete any remaining research before launching.</p><h3>Emerging Stage</h3><p>First stage funding often coincides with a company's market debut, when it's ready to start making money. This phase of venture capital funds product manufacture, sales, and marketing. To launch officially, firms require a larger financial commitment, so financing levels at this stage are generally higher.</p><h3>Expansion Stage</h3><p>The expansion stage is when the firm is constantly growing and requires more funding. Because the business already has a commercially viable product and is seeing some profitability, venture capital financing in the emerging stage is employed to develop the business via market growth and product diversity.</p><h3>Mezzanine Stage</h3><p>The bridge stage of venture capital investment is for large businesses. This funding is used for mergers, acquisitions, and IPOs. The bridge state is a transition from a full-fledged enterprise. Many investors sell their shares and discontinue their association with the company at this time, frequently making a profit.</p><h2><strong>The Benefits of Venture Capital</strong></h2><p>First and foremost, the ability to achieve great success as a venture investor is an obvious advantage. You will be paid based on the success of your investments, so if you make the correct decisions, it might be a great deal for you and your startup.</p><p>Let’s take a look at the benefits of venture capital to <i>investors</i>:</p><ul><li>A diverse portfolio allows an investor to engage in a high-risk, high-reward investing process.</li><li>Investing in a venture capital fund reduces risk due to the fund's diversification across several businesses. A diversified portfolio will have a lower overall risk than any one investment.</li><li>VCs give the chance to identify and build relationships with a variety of entrepreneurs and businesses.</li></ul><p>Let's dive into the benefits of venture capital for<i> startups</i>:</p><ul><li>Venture capitalists provide a large amount of money to put into your business since they work for big companies. The money is enough to not only start your own business but also grow it.</li><li>Venture capitalists use their connections in your industry to promote your business. They can support your business by promoting your product or service.</li></ul><p>Because they have committed their time and money to your business, you can rely on them to increase your reputation.</p><ul><li>It eliminates your obligation to pay back the money. Similar to angel funding, venture capital does not demand you to repay your investors. You may just need to provide them with a return on their investment via a portion of the profits.</li></ul><h2><strong>Final Words</strong></h2><p>To summarize, venture capital is a sort of investment fund that invests in private companies for a certain period of time by providing equity stakes. The benefits of venture capital include enhancing corporate activity and potential as well as enhancing product marketing efficiency and liquidity while simultaneously increasing the level of difficulty and profitability.<br>We hope that you now have a better understanding of the amazing opportunities that venture capital offers.</p><p>Eurokick can guide you through the difficult process of starting a business by investing in and consulting with you from the beginning. Please feel free to<a href="https://eurokick.com/"> visit our website</a> for more information!</p><p><br><br>&nbsp;</p>

The Basics of Venture Capital for Your Business

<p>Angel investors are high-net-worth individuals who give financial support to tiny businesses or entrepreneurs, generally in return for an ownership interest. Angel investors are often found among the family and friends of a business. Angel investors may put money into a business just once to help it get started, or they may invest in the business regularly to help it through its early, difficult stages.</p><p>Angel investors can be successful business owners who have knowledge or experience in the field in which they are investing. In addition to investing, they can help a small business by giving advice, making connections, and sharing what they know.</p><p><strong>Angel investors are interested in startups and small business ideas, but they also want their money to grow and pay off in a big way in the future.&nbsp;</strong>This means they may pay close attention to the startup's business and get involved in making decisions to make sure their money is used well.</p><p>In this article, we will look into angel investors for startups; an example of an angel investor; the difference between a venture capitalist and an angel investor; and the pros and cons of angel investors.</p><h2><strong>What Does an Angel Investor Do?</strong></h2><p>Unlike venture capitalists, angels often do not work in the investing area full-time. Instead, they are often selected from the ranks of company owners, well-to-do professionals, and other wealthy people with the means to invest in a potential startup. They are often experienced entrepreneurs who have developed successful businesses and want to support the next generation with hands-on guidance and the advantages of their expertise while possibly generating a reasonable return.</p><p>In return for their investment, an angel often receives a share in the firm as well as the opportunity to provide advice and direction to the founders. Then, five to seven years later, if everything goes well, they hope to earn a handsome profit when the business goes public or finds a buyer.</p><p>Angel investors give money to businesses in a wide range of fields. The Center for Venture Research at the University of New Hampshire says that in 2020, angel-funded businesses were in the seed and startup stages for the first time in a few years. In that year, a total of $25.3 billion was spent on investments, which is 6% more than in 2019.</p><p>&nbsp;</p><h2><strong>What Is An Example Of An Angel Investor?</strong></h2><p>For instance, consider the concept that Joshua has for a means to power widgets not with electricity but rather with miniature solar panels that can be bent and stretched. To capitalize on the concept and get the product on the market, he will first need to create a prototype and then launch a company.</p><p>Joshua can locate Samuel Jones, an angel investor. Samuel is a prosperous friend of a friend who is enthusiastic about Joshua's proposal and hopes that it will be successful. Samuel is not concerned about the possibility that Joshua's product might not function as advertised or that Joshua might turn out to be an unreliable businessperson. In exchange for his $100,000 investment, he was given a forty percent stake in the business. Joshua puts the money to work by constructing the prototype and launching the enterprise. Samuel gives good business advice and encouragement.</p><p>&nbsp;</p><h2><strong>What's an Angel Investor vs. a Venture Capitalist?</strong></h2><p>Angel investors and venture capitalists seem identical at first glance. Both invest in small businesses in exchange for ownership. However, in many aspects, they are distinct types.</p><p>Angel seed investors put their own money into a small business, which makes it much more personal. Venture capitalists, on the other hand, are institutional investors. Angels usually invest before venture capitalists, and they want to see evidence that the founders they are investing in are dedicated, talented, and able to keep going even when things get tough.</p><p>Angel investors, unlike typical venture capitalists, make investment choices rapidly and seldom need board membership as a condition of investing. They also often invest less money than venture capitalists. As a result, they are an appealing financing alternative for businesses that do not need huge investments and want to keep greater control over their business.</p><h2><strong>The Pros and Cons of Angel Investing</strong></h2><p>There are some advantages of angel investing as well as some disadvantages.</p><h3><strong>Here are the benefits of angel investors for startups;</strong></h3><p>When you give ownership shares to an angel investor in exchange for money, your business doesn't have to pay back the money. Angel investing is usually only for businesses that have been around for a while and are no longer just starting up. These businesses have shown that they can make money, but they still need money to make new products or grow. Because an angel's money is at stake, they can be very motivated to help you succeed by mentoring you or giving you direct help with the management.</p><p><strong>One definition of an angel investor is someone prepared to take risks.</strong> To qualify for a small business loan, you will typically need to jump through a few barriers and overcome a few obstacles, which are things you might not have to do when dealing with angel investors. "Angels" are frequently established entrepreneurs who understand the risk and are comfortable with it. Even if the bank agrees to lend you money, they may limit the amount to reduce their risk. Angel investors may make larger investments if they believe in a business's potential.&nbsp;<br>&nbsp;</p><p>Numerous investors have professional networks. This suggests that they may often use the resources of other individuals to invest alongside them. This decreases their risk but enhances your profits since you may benefit from their expertise and financial strength. Or, the introduction may provide specialized knowledge, such as a marketing specialist, who could assist you in advertising your startup.</p><p>&nbsp;</p><h3><strong>Here are the cons of angel investing;&nbsp;</strong></h3><p>Angel investors usually want 10% to 50% of your business in exchange for money, which is a big downside. That means business owners could lose control of their business if angel seed investors decide they are keeping the company from doing well. It's important to think about how much equity you want to give to an investor in exchange for funding. If you give too much and things don't go well, the angel investor may own more of the company than you do.<br>&nbsp;</p><p>Some entrepreneurs find angel investors annoying since these investors have high expectations and the entrepreneur assumes the most risk at the beginning of the startup. Therefore, they want to ensure that they get all of the money they've earned from the contract. They want to ensure that their time and money are profitable, and they may even establish a timeline for when they would want to see a particular amount of profit throughout the years.&nbsp;</p><h2><strong>How to Find an Angel Investor for Your Startup</strong></h2><p>Finding angel investors is a very simple procedure. Angel investing is all about connections and trust. For your small business to get the best angel funding, you will have to go out and meet people. Angel investors can be found at events like fundraisers and conventions.</p><p>Angel investors can also be found on the Internet. Before you meet in person, you can use online platforms to help you find the right people. Because they maintain a network of angel investors, these platforms serve to fill the financing gap that exists between investors and entrepreneurs. You can also look for networks or groups of angel investors. If you pitch angel networks, your chances of success will probably go down, at least a little.</p><p>Once you've found possible angel seed investors, set up a time to meet with each of them separately so they can hear your pitch. Before your meeting, work on your small business pitch. Your pitch should be short, easy to understand, and easy to remember. Even if someone doesn't know you or your business, that pitch should tell them everything they need to know.</p><p>So, where do you find the best angel investors for your startup?<br>&nbsp;</p><p>Eurokick is an excellent starting point, whether you are searching for angel investors for your firm or wanting to invest in startups. Eurokick offers anybody the opportunity to invest in private companies that have been approved and assist them in raising financing.<br>&nbsp;</p><p>Eurokick has made it simpler than ever to get angel investors for your startup.&nbsp;Please feel free to <a href="https://eurokick.com/contact">contact us</a>.</p><p><br><br>&nbsp;</p>

Angel Investors: What Is Angel Investing & How to Find

<p>Raising capital for a new business venture may be a difficult and time-consuming task, especially when you have to consider issues like shares, stock, compliance, rights, and even the type of financing that would work best for you.&nbsp;<strong>Seed money is the first amount of cash that a startup company receives to pay for expenditures associated with everything from product development and research to marketing costs and expenses.</strong> The term "seed funding" refers to this initial amount of investment.</p><p>Many people might take out personal loans when starting a new business. However, this may not always be possible, which is where seed money comes into play. An ownership stake in the company is often exchanged for seed money from family members or friends, crowd funders, or angel investors.</p><p>The term's use of the word "seed" is suitable. The smallest seed may one day grow into a dense forest. Investing even a small amount of money in a startup can help it develop into a successful business.</p><p>In this article, we will explain why seed funding is important, the types of seed funding, and the difference between seed funding and angel investing. Also, we will explain the importance of seed funding for startups.</p><h2><strong>Why is Seed Funding Important?</strong></h2><p>Start-ups can greatly benefit from seed funding. Here are some of the benefits of seed funding.</p><ul><li>It minimizes the risk that an entrepreneur faces while starting a new business.</li><li>It compensates for insufficient cash.</li><li>It provides access to operating finance.</li><li>It strengthens corporate relationships by introducing strategic partners.</li><li>It facilitates and accelerates expansion.</li></ul><h2><strong>Types of Seed Funding</strong></h2><p>Investing in a start-up can come in many forms. Each type of seed funding has its advantages and disadvantages. It is important to learn about different types of seed funding to find the best financing for your business.</p><h3>Incubators</h3><p>In addition to contributing tiny amounts of start-up cash, these investors concentrate on assisting fledgling enterprises via training and often also supply office space. Many prestigious educational institutions, like IITs and IIMs, also provide these services. In general, incubators do not ask start-ups for ownership stakes.</p><h3>Crowdfunding</h3><p>Crowdfunding platforms have recently been a popular source of startup investment. There are over 500 crowdsourcing platforms. These platforms are open, and people from all across the world contribute small sums to finance an idea, concept, or product. The only disadvantage is that they mainly depend on brand promotion to generate attention.</p><h3>Angel investors</h3><p>Angel investors are investors who put seed money into a new business in exchange for equity or debt that can be turned into equity.</p><h3>Corporate Seed Funding</h3><p>Startups benefit from corporate seed investment because of the increased visibility it provides. Large corporations, such as Google, Intel, and Apple, routinely provide initial capital to new businesses. For young startups, these investments may be quite beneficial.</p><h3>Accelerators</h3><p>The main goal of accelerators is to help new businesses grow, not to help them come up with new ideas. They also help by giving training, mentoring, and chances to connect with other people. Accelerators usually take equity, which is different from most incubators.</p><h3>Debt Funding</h3><p>Debt funding means money that comes from banks or other financial institutions in the form of loans. You will also be in this group if you have borrowed money from family or friends. Under this type, you can also get loans from venture capitalists instead of equity investments.</p><h3>Venture Capital Funding</h3><p>Venture capitalists are high-end investors who decide to put money into a new business after considering factors like the market, the founder's vision, and the business's growth potential.</p><h2><strong>What Is the Difference Between Seed Funding and Angel Investing?</strong></h2><p>While seed funding and angel investing are distinct concepts, the phrases are sometimes used interchangeably.&nbsp;</p><p>Angel investors give startups money in the form of loans or stock. This financing enables businesses to expand while also assisting with operations. They often like to take an active role in the founding of a new business. The money is often provided as a loan if the angel investor's contribution is less than $1 million. Because the majority of angel investors provide funding in the early phases, they are also classified as seed investors. Angel investors are often wealthy people, sometimes known as "high-net-worth individuals" (HNWI). These people are drawn from the founders' networks.</p><p>Shortly,&nbsp;<strong>when a new company is founded, the early investors are known as angel investors.&nbsp;</strong>Individuals or a syndicate of investors invest in early-stage enterprises under the umbrella of an angel network. To put it another way, seed funding precedes series funding. In other words, it is during the seed investment round that the firm begins to attract the attention of major participants in the venture capital industry.</p><h2><strong>The Importance of Seed Funding for Startups</strong></h2><p>The very essence of a startup is to pursue rapid growth. Almost all start-ups will fail if they do not have starting finance. Family, relatives, and other conventional sources of finance are usually not enough to help a new entrepreneur enter a new industry. To attain profitability and long-term sustainability, high-growth enterprises are required to exhaust their available capital. There are indeed certain start-ups that have never accepted financing from outside sources, but this is the exception rather than the rule.</p><p>A rapid infusion of cash enables businesses to take off and thrive. It is a fact that a new business often has to compete with well-established, profitable businesses that have cash on hand. Without that money, a new business is already at a great disadvantage.</p><p>The process of seeking money for a startup's seed round is time-consuming and expensive. It's a long, difficult, and frustrating process. It's normal to feel discouraged while establishing a company, but remember that most successful entrepreneurs have experienced the same thing.</p><h2><strong>To Sum Up</strong></h2><p>Funding is crucial for the success of your enterprise. There are times when you need funds in the early phases of your business cycle. Seed funds meet your financial needs for your company concept to develop and survive.&nbsp;</p><p>Unfortunately, the seed round is the hardest because you probably only have a barely viable product and no market experience yet. And it will be harder to find investors willing to put money into your startup, but it will be worth it. Getting your finances in order early gives you a big advantage over startups, and the right investor can help you do that.<br>&nbsp;</p><p>At this point, Eurokick can help you find the best investors for your high-fidelity, innovative, and globally scalable startup and consult on your business growth. Click here to <a href="https://eurokick.com/contact">contact us</a> and get more information.</p><p><br><br>&nbsp;</p>

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