SOURCE: JumpStart

JumpStart

August 20, 2009 16:44 ET

What Type of Startup Funding Is Right for Entrepreneurs?

CLEVELAND, OH--(Marketwire - August 20, 2009) - An innovative product has been developed. A niche target market has been honed. The business plan is sound. Now, all that the entrepreneur needs is capital to launch their startup -- where should they turn?

"Entrepreneurs need to know who they are pitching. Pitch to the right funding source and they can hit it out of the park. Present to the wrong type and entrepreneurs will strike out quicker than they can give their two minute elevator pitch," says Tiffan Clark, VP of Marketing for JumpStart, the company behind IdeaCrossing.

Entrepreneurs need to research each potential investor, know their investment criteria, and make sure there is a clear fit between what the investor is looking for and what their business offers. Approaching a potential investor that is not synergistic will be a waste of time for everyone.

Find Funds Here:

--  Friends and Family: A great source for initial startup capital, this
    is heavily dependent on who they know. Those with wealthy friends or
    relatives are more likely to find success here.
--  Angel Investors and Groups: These well-off individuals invest smaller
    amounts ($50,000 to $1 million) in early-stage, risky ventures. Because
    they're frequently entrepreneurs, they can provide invaluable management
    advice.
--  Venture Capitalists: VCs invest between $250,000 to $5 million in
    companies run by proven self-starters and established management teams.
    They tend to lean towards high-potential, high-technology companies.
--  Banks: If there are assets to borrow against and funding is sought
    prior to positive cash flow, turn to banks.
--  Government Grants: Apply for a grant if the startup is in development
    or scientific research. If it's in a depressed locale, a government grant
    may be available to stimulate growth.
    

Registering as an IdeaCrossing Entrepreneur enables startups to get matched based on compatibility to the accredited investors necessary to grow their businesses.

About IdeaCrossing

IdeaCrossing (www.ideacrossing.org) is a free online resource available to anyone with an interest in supporting and promoting entrepreneurial activity. IdeaCrossing helps entrepreneurs find the assistance and investment capital they need to launch promising new business ventures. Additionally, IdeaCrossing serves the Angel and Venture Capital communities by identifying and screening new investment opportunities. IdeaCrossing is about creating the connections that build businesses.