Thursday, 21 October 2010

Seed Funding for First Step Help

A very important factor for an entrepreneur is finance to back up the work. This factor is so crucial that it even makes a person decide whether to step into entrepreneurial world or continue with job!

No individual or company will invest a huge amount when a company is just started. So funding is looked at in steps, it changes with time and revenue. At the very initial stage when a product is to be developed or research to be done seed funding comes at help. Investment companies will not be interested in investing in this phase of your company as it won’t have promising returns. You’ve to convince people from your network about their safe and timely returns. You are bound to encounter surprises and shocks because of denials! You can even look for programs or companies like Y Combinator which are keen to train and fund start-ups. But again the key is you should have good idea or plan with you and should be able to convince!

Looking at general graph of revenue against time of a start-up seed funding gets the company going through the initial stage, till break even is achieved. Once that is achieved you can look at further rounds of funding with bigger capital involved!

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