Funding for the Brand New (pre-revenue) Company
Originally published on June 5, 2014
Updated on February 4th, 2024
- First thing is to make an investment in yourself. If you have any money, use it to get your company going. Forego a salary to invest your time in building your company up. If you think about it, why would someone else invest in your company if you weren’t willing to do the same?
- The second source of funds is what is fondly called “friends and family”. Hopefully you have some people in your life who believe in you and want to help. Because at this point you likely do not have a proven product, don’t have customers. Friends and family are really investing in you, not your company. Even at this level of investment you should consider getting advice from an experienced professional on how to structure this investment based on your future plans and goals.
- The third source of funds (and you may need to be further along with your business since these people don’t know you like your friends and family) is angel investors or high net worth investors. One challenge is finding these investors. Make sure that as soon as you start your business you start networking with people who may be able to connect you with investors. Introductions from your network are critical to access this source of funds.
