7 Foolproof Ways to Increase Your Chances of Finding Startup Funding

Published on: 26 March 2019 Last Updated on: 30 October 2024

Are you an entrepreneur hoping to build a thriving business backed by investor funding? Do you have an awesome business idea with product/market fit, but need angel investor funding to help your business scale? If so, you’ve come to the right place. There are a number of ways you can increase your chances of finding startup funding if you are strategic in your approach to making valuable connections.

Gabriel Patterson, a Toronto based chairman at Bethmann Lombard Bancorp, is a dynamic businessman and certified Islamic finance specialist who has over 26 years of investment banking experience.

7 Foolproof Ways to Increase Your Chances of Finding Startup Funding

Below, he shares and encourages you to incorporate the following seven tips into your fundraising efforts to improve your chances of scaling your company.

Confidence is Essential:

Be confident when attempting to raise funds for your startup. Investors will often back an entrepreneur they believe in even if the entrepreneur’s startup idea isn’t strong. Investors know the entrepreneur can always pivot their startup to a more profitable business idea, but they want to be among the first investors to bet on an entrepreneur who exudes confidence and drive.

Always be Networking:

Make time for networking with potential investors regardless of how busy you are building your startup. Something as simple as schmoozing with angel investors and VCs (venture capitalists) on Twitter can help get your startup on their radar. Add valuable insights on Twitter conversations, don’t overtly promote your startup, and continually tweet helpful content to build the startup ecosystem. Your efforts won’t go unnoticed, especially if your business idea is appealing.

Know Your Ask:

Know what you want when pitching potential angel investors and VCs. An entrepreneur with a lukewarm pitch with no firm ask isn’t going to survive long with seasoned investors. Know what you’re asking for, be firm in your presentation, and be prepared to negotiate to keep the entrepreneur/investor relationship moving forward.

Consider Smaller Rounds:

Be prepared to accept a smaller round of funding than what you initially ask for from investors. You may have grandiose plans and think you need a major round of seed funding or Series A funding. This is a common trap many entrepreneurs fall prey to when raising funds for their startup. Even smaller amounts of funding can be quite helpful in moving your company ahead. If you learn to reduce your burn rate and spend your funding wisely, you’ll be amazed at how far a smaller amount of funding can take you and your startup.

Investigate Investors:

Don’t assume it’s only big-name investors who can help grow your startup. Too many entrepreneurs think they’re only successful if they raise funding from famous VCs and investors in Silicon Valley, Los Angeles, or New York City. Nothing could be further from the truth. You can raise funds for your startup from investors anywhere, but you need to approach them with respect and understand their investment thesis. The more you investigate potential investors for your startup, the more likely it is you will find reputable financial backers for your business.

Ethical Behavior Matters:

Be careful how you portray yourself when in public. You never know who you might be chatting with at a networking event or who they might know. One slip-up in behavior or egotistical boasting could potentially cost you the financial funding you so desperately long for. Be an entrepreneur with ethics and a strong moral code and you’ll increase your long-term odds of startup success.

Appeal to Investor Emotions:

Don’t forget to appeal to investor emotions when seeking funding for your startup. You must know your numbers and offer a pitch deck that investors can believe in, but it never hurts to appeal to their emotional side too. You don’t want to overplay this card, but a touch of emotion in your investor outreach efforts can go a long way.

Remember these seven foolproof ways of increasing your chances of finding startup funding and you’ll improve your entrepreneurial future. Raising funds for your startup is hard work, but the rewards can definitely be worth all the sacrifice and long hours.

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How Do You Avoid Negative Equity On Your Next Car Loan?

Car finance allows drivers to spread the cost of a new or used car into affordable monthly payments. By borrowing money from a lender, drivers can purchase a car and pay the lender back in monthly installments until the end of the agreed term. Negative equity is a term you may hear often with car finance, and for many drivers, it is best to avoid it. Find out how you can ensure you don’t end up with negative equity and what to do next if you find yourself in this situation. What Is Negative Equity? In car finance, negative equity is when you owe more on your loan than your car is worth. Negative equity can be known as outstanding car finance or an upside-down loan which means if you sold your car to clear the loan, you still wouldn’t have been able to pay the balance off. For example, if your settlement figure was £6,000 and your car was worth £4,000, you would still owe the finance company £2,000. Usually, negative equity happens when the value of your car drops quickly during your agreement. This is especially common with brand-new cars, as they can lose up to 50% of their value in the first few years of ownership. Here, if you want to trade in your car but have negative equity, you will need to repay the loan amount before you take a new loan to purchase a new vehicle. What Are The Reasons For Negative Equity? Basically, a negative equity situation happens for a variety of reasons. For instance, an upside-down situation in regard to a car loan can happen due to the following reasons: You might have a loan for a longer term. Apart from that, your vehicle has also gone through depreciation since your purchase. There is a no-money-down auto loan in your case, or you might have paid more than the sticker price of the vehicle due to the inclusion of add-ons. You might have purchased an expensive vehicle, which might not have the same value that you expected during the purchase. Your debt regarding the loan is of a high rate of interest. Hence, most of the money that you are paying is going to the interest as compared to the principal. Depreciation is also a major factor in this case. Basically, the term rate of depreciation shows how fast an asset loses its value. Generally, a car loses almost 20% of its value in the first year itself. Furthermore, the process of depreciation continues to happen in the following years until the car fully loses its value. Why Is Negative Equity Problematic? Negative equity within your car finance deal can be an issue because you will still owe the lender money even if you sell your car. In some cases, you may not be able to sell the car, too. If you find your circumstances have changed and you can’t afford to carry on with the loan, you may be charged additional fees for missed or late payments, and it can lead to much more serious financial consequences. How Do You Avoid Negative Equity In The First Place? Before you take out a car finance deal, consider these factors below to help prevent negative equity from occurring: Only Borrow What You Can Afford. If you’re in a position to buy a new car on finance, it’s important you use a car payment calculator first to see how your loan could look and make sure it is affordable. This may mean choosing a used car over a brand-new car, as older cars usually have already depreciated at their fastest rate in previous years. Put Down A Larger Deposit. A larger deposit contribution at the start of your finance agreement can help to reduce your loan amount. A smaller loan can help to reduce the risk of your car being worth less than how much you owe. Choose A Slower Depreciating Car. If you want to avoid negative equity, you could consider choosing a car that depreciates at a slower rate. Cars that hold their value will be less likely to leave you out of pocket at the end of your car finance deal. Make Higher Payments. Negative equity can often be associated with PCP deals as they offer low payments and a large balloon payment at the end of the deal. Opting for a deal such as a hire purchase, which aims to pay off the value of the car at the end of the deal and has higher monthly payments, can help avoid any outstanding finance. How Do You Get Out Of Negative Equity? There are different ways of getting out of negative equity. However, based on your current situation, you will need to choose which way works the best for you. Basically, you will need to choose the one that goes with your budget. Furthermore, it also depends on whether you want to keep the vehicle or not. Hence, to get out of negative equity, make sure you do the following: 1. Start By Paying Off The Loan The most obvious way to pay off your negative equity is to accelerate your payment. Here, the faster you pay your loan off, the sooner you will be able to deal with the debt. One of the best ways of paying off the loan is to pay extra on the principal part. Apart from that, you can also consider paying a lump-sum amount beforehand to avoid paying interest for a longer period. Hence, you must consider reviewing your budget and savings from time to time to pay off your existing debt. 2. Loan Refinancing Here, you might consider taking out a new loan to pay off your existing debt. This will help you in getting out of your upside-down car loan faster. This works even better if you can avail of a new loan with a lower rate of interest. 3. Selling The Vehicle If you do not need the vehicle, you can consider selling off the vehicle. This way, you can get a lump sum of cash, which will allow you to pay off the loan. Furthermore, if you sell the vehicle to a private buyer, you will have the option to negotiate the price further. This will enable you to get more cash, which will further help you to pay off the negative equity. 4. Surrendering The Vehicle If you handle the vehicle to the lender, you can get out of the negative equity, too. In addition to that, if you do a voluntary surrender, you will be more likely to get out of the negative equity. Summing Up: Getting Out Of Negative Equity If you’ve not been able to avoid negative equity and need to know how to get yourself out of it, follow the top tips below: If you can still afford your current car finance payments, it is recommended you stick with the deal you have at the moment. In many cases, your deal will balance out over the duration of the loan, and the negative equity should be settled by the time you reach the final payment. You could pay off your negative equity by paying the lender in cash. You can hand your car back to the lender through Voluntary Termination. If you’ve paid half of your agreement off, you could return the car to the lender. It’s always best to speak with your lender first, though, to see how they could help you. Do you have any more ideas to add? Consider sharing in the comment section below. Read More: Proven Strategies To Captivate Buyers And Sell Your Business Successfully Get On The Online Market With The Best Web Design Experts In Brisbane 8 Tips For Tech Industry CV Writing That Highlights Your Skills And Experience

Crypto Market Insights And Tips For Investors

Despite being a relatively new market, cryptocurrency markets exhibit high volatility. This article explains the factors that contribute to this volatility and discusses how investors can manage it. While cryptocurrencies offer many opportunities for investors, they are riskier investments than traditional stocks and bonds. Nevertheless, their prices have been decreasing in recent years. What Is Crypto Market Volatility? The volatile nature of crypto markets poses both opportunities and risks for investors. Understanding what drives market fluctuations can help investors make more informed decisions about their investments. The article also explores strategies for diversification, stop-loss orders, dollar-cost averaging, and derivatives. Cryptocurrency prices are highly sensitive to a range of factors, including supply and demand, governmental regulations, and technological development. Some of these factors are unique to the cryptocurrency market, while others are more commonly associated with stock markets. For instance, the mining process of some coins can lead to an increase in price as more people want to buy them. As with others, mining methods can be using platforms such as https://rollercoin.com/free-bitcoin. The resulting higher demand can create a positive feedback loop, causing the price to increase even more. Despite this volatility, however, the return on investment can be high. Decentralized Nature Of Cryptocurrencies Cryptocurrencies are decentralized, meaning they do not have a central authority. Instead, they rely on blockchain technology to verify transactions. The resulting records are immutable, so once data is entered, it cannot be changed. This is different from centralized databases, where data can be changed by a single user. The decentralized nature of cryptocurrencies allows investors to take control of their investments. It also removes the need for intermediaries, such as financial institutions and banks. This may improve liquidity, reduce fees, and decrease the risk of price crashes. Investors should research a cryptocurrency before investing in it. For example, they should look at how widely it is used and who its founders are. Reputable projects will typically make their metrics publicly available. They should also have a clear plan for the distribution of tokens. Macroeconomic Factors There was a time when cryptocurrencies lived in isolation and were unaffected by traditional market forces. However, as more institutional investors and corporations enter the crypto market, they are becoming more influenced by macroeconomic factors such as interest rates, inflation, and unemployment. These factors affect the demand for risky assets, including cryptocurrencies. In addition, new technological developments can have an impact on the crypto market. For example, a new cryptocurrency could have lower energy consumption than existing ones, which would increase its appeal to investors. Another factor that influences crypto market volatility is the correlation between Bitcoin and stocks. This trend has increased in 2022, indicating that cryptos are acting as risky assets. This is a concern because it limits the benefits of using them as a way to diversify investments. Volatility Indexes A volatility index is a real-time measure of implied market volatility. It is based on the prices of near-term stock options, and it represents investors’ expectations for volatility over 30 days. In times of market stress, the VIX tends to rise. Investors have used the VIX as a gauge for market sentiment, and it can help them assess their risk exposure. However, there are other factors to consider when evaluating a potential investment. The VIX is not a perfect tool for measuring risk, but it can provide an indication of investor expectations about future market behaviour. There are also other volatility indices that track specific markets, and some have derivative securities that can be used as hedges against market corrections. These securities have become very popular, but they should be viewed carefully. Investment Strategies Crypto investments can be a lucrative asset to add to your portfolio, but they are also incredibly volatile. Investing in the right strategies can help protect your portfolio against crypto market volatility. These strategies include educating yourself, diversifying your investment portfolio, setting achievable goals and employing tactics like dollar-cost averaging. Cultivating emotional resilience and making rational decisions are also essential. Unlike stocks, which are backed by assets and earnings, cryptocurrencies have no intrinsic value. They are prone to being manipulated by investors who attempt to artificially drive their prices up or down. However, a diversified crypto portfolio can mitigate these risks by investing in coins with strong development teams and a promising future. It is also recommended to look for cryptocurrencies with distinct use cases and varying market capitalizations. Read Also: Why Entrepreneurs Should Pay Attention To Cryptocurrencies In 2021 What Is The Concept Of ‘HODL’ Which Everyone Is Talking About In Bitcoins Types of Bitcoin Trading with Parameters

How To Invest In Cryptocurrency Without Buying Any?

I hope I don’t need to explain what is cryptocurrency now, you are already well aware of that. Cryptocurrency is not that straight forward you know. You need to have some exposure to it and then you could go on to invest in it. Well, if you are going to follow Warren Buffet’s remark that one must not invest in something which is hard to understand- it might not work here I tell you. Just have a look at the performance of Cryptocurrency. The prices of Bitcoin in the year 2020 March covered a massive long jump from $5000 to $60000 by April 2022. Therefore it's not wise to avoid Crypto! But how to invest in Cryptocurrency without buying it directly? You could buy bitcoin with credit card. So let's begin… How Do You Invest In Cryptocurrency Without Buying? Cryptocurrencies had been a dream run from 2020 to 2021. In November 2021, while cryptocurrencies were at the top of the price charts, the Crypto Winter reversed a majority of the registered gains that year. The simplest way to expose to crypto investment instead of buying crypto itself is by purchasing stocks within the company. This is not that easy and might take some of your time. So what's the problem? There are some ways through which you could go on to procure exposure to Cryptocurrency without investing in it. 1: Investing In Companies With Crypto Interests You could go on to maintain a balanced portfolio by identifying the companies that have interests in Crypto rather than buying the shares in a Crypto company. This will be beneficial to you. This is because it will not only allow you to invest in the companies where you see there is potential, but also it will allow you to keep your investment permeated within the broader fund. For example, if you invest in Vanguard, you could go on to use the holding search of the sites to trace all the Vanguard funds that constitute a specific organization. Here are some of the examples of business organizations that add Bitcoin to their business. Microstrategy(MSTR). Bitfarms (BITF). Marathon Digital Holdings. Galaxy Digital (BRPFF). 2: Invest In Cryptocurrency-Related Business You could also consider investing in Crypto-related businesses. For example, there is Marathon Digital Holding which creates the largest Bitcoin mining company in North America. There is another suitable option and that is Riot Blockchain (RIOT). This will help provide you with the required exposure as well as cryptocurrency news that will give you the required knowledge base. 3: Investing In Crypto Infrastructure Do invest in the companies that have stakes in the Cryptocurrency industry. This is just like Gold…you could either go on to invest in Gold itself as well as in the infrastructure that surrounds Gold. Thinking of Miners?..the material required for mining activity?... That's the Blockchain Technology instead of energy and oil I tell you. So it's safer. There are a handful of public companies that are presently handling Blockchain, so you may think of investing there. 4: Exchange-Traded Funds (ETFs) ETFs are like some container of stocks but their function is like that of Equities and Mutual Funds. If you go on to purchase a unit of an ETF it will provide you with the required exposure to investing in Cryptocurrencies. Within the ETFs, there are diverse industries. And all you have to do is to pick one industry. Well, you could take ETFs with Blockchain firms. Some of the good etf Blockchain Options you have: 1. BLCN- This holds Accenture and Coinbase. 2. LEGR (Process ETF and the First Trust Indxx Innovative Transactions)- The holdings include Fujitsu and NVIDIA. 3. BLOK (Transformational Data Sharing ETF)- Well, this is by far the biggest Blockchain ETF with Holdings and they include Microstrategy, Square, and Paypal). 5: Be Cautious If You Are Investing Directly Mind that you are not experienced enough and you are going to invest in Cryptocurrency directly! Well, you ought to be cautious. There are a few ways through which the risk could be lessened. There are some credits that go on to offer rewards on Cryptocurrency. You don't have to have to invest your hard-earned dollars in it! Another way you could mitigate the risk is to invest in Stablecoin. They are a bit similar to the traditional Cryptocurrency but they are backed by real-world assets. This acts to significantly drop the value. Bottom Line Investing in individual stocks could carry similar risks as an investment in cryptocurrency. Do you think that you are going to get away with this kind of shadow practice? Let me tell you that not these stocks or specialized ETFs are a form of guarantee. There is the ambiance of volatility and it is akin to what can be seen in the Crypto markets. For more updates on topics related to cryptocurrency prices, stay tuned to our website. Have any queries? Let’s talk in the comment area below. Read Also: 7 Reasons Why Crypto Is The Best New Side Hustle For You Exciting Facts About Cryptocurrency And Crypto Wallets What is the Best Instant Cryptocurrency Exchange? 5 Best New Cryptocurrencies To Buy in 2022

7 Foolproof Ways to Increase Your Chances of Finding Startup Funding

7 Foolproof Ways to Increase Your Chances of Finding Startup Funding

Confidence is Essential:

Always be Networking:

Know Your Ask:

Consider Smaller Rounds:

Investigate Investors:

Ethical Behavior Matters:

Appeal to Investor Emotions:

Self-employed Health Insurance: Best Types for Every Freelancer

What Is the Best Tax Software to Be Using in 2019?

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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Related

How Do You Avoid Negative Equity On Your Next Car Loan?

Crypto Market Insights And Tips For Investors

How To Invest In Cryptocurrency Without Buying Any?

7 Foolproof Ways to Increase Your Chances of Finding Startup Funding

7 Foolproof Ways to Increase Your Chances of Finding Startup Funding

Confidence is Essential:

Always be Networking:

Know Your Ask:

Consider Smaller Rounds:

Investigate Investors:

Ethical Behavior Matters:

Appeal to Investor Emotions:

Share this Article

Self-employed Health Insurance: Best Types for Every Freelancer

What Is the Best Tax Software to Be Using in 2019?

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Follow Us

Recent

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