Where to Go to Raise Money for Your Startup in the U.S.

The one question that business owners can never get enough of is – how to raise money for their business. Whether you are in the U.S. or elsewhere, before you even start your business you want to know how and where to get funding from. After all, without funding, there would be no business.

Funding is not only the life and blood of a startup but it is also one of the main factors that determines the course on which the startup will travel and grow. Yes, it’s that critical! Imagine this when you start a business – you need seed capital to buy assets, procure resources, and sustain the business for the initial months. After a time, you feel your business is picking up pace but hold it – you don’t have funds to carry on the show. It’s at this time that you wished you’d made a wiser decision regarding your funding. You wished you’d weighted your options before deciding on the source of raising money, and now you don’t have much choice.

So to put it simply, basically the ideal source of finance for your business would be one that is flexible, cost the least, and allows you to repay in good time without disrupting your startup operation. While this may sound simple, the decision process for the right source and raising money for your startup is pretty complex. Banking policies, financial institutions’ limitations, and the terms for loans are difficult to understand if you’ve never dealt with them before. Moreover, you are already desperate for money that you’d accept anything at that time to keep your business floating.

In the U.S. while the government support is there in the form of The U.S. Small Business Administration (SBA) which most small businesses tend to take advantage of but startup support is limited. If you want to know about startups then you’d have to talk to a business consultant or depend on what anyone else has to offer based on their experience. If you require professional advice, then it’s best left to the private sector or the nonprofit organizations like incubators and accelerators, or friends and family members.

You must have received tons of advice from friends, family and colleagues where to go but what they don’t provide you is information about the sources of funding. And more importantly, their plus or down side. That’s where this podcast comes in.

In the following podcast, you’ll learn the sources of raising money for your startup specifically in the U.S. because that’s the one place where you get more opportunities than in other countries. Moreover, we’ll also be talking about why one option is better than the other or not at all. Here goes, take a listen and let us know if we have missed out any.

Once you’ve decided on a reliable source for financing your startup, don’t make the decision to take action right away. We recommend research in depth of the specific source of finance that you are interested in. The reason is that almost all financial institutions operate differently, and depends on individual preferences as well. Moreover, while the incubator or angel listed may seem interesting and convenient, here’s the low down their acquisition and success numbers:

  • Personal Funds, personal credit – 57%
  • Friends and family – 38%
  • Venture capital – 0.05%
  • Angel investors – 0.05%
  • Banks – 1.43%
  • Crowdfunding – 0.96%


Given the above, we’d say tread carefully before committing yourself to institutional financing. Try to avoid them if you can.

Janil Jean is an idealist blogger and social media addict who loves conversations related to branding, storytelling, startups and small business technology and design.

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