We spoke with Josh Melick, a career entrepreneur who has founded and sold multiple startups, about the evolution of startup funding over the years. He told us that during the past decade, it has become much easier to start an internet business than ever before. But one thing that has not changed is the need for capital to get a startup off the ground.
That is because running a company requires much more than just the initial product. It also takes time to find customers who are willing to buy, space for those people to use what you sell, and equipment that will allow your business to operate.
There is the added expense of inventory with physical products, which ties up significant amounts of money. All of these things cost money, and it usually involves taking out a loan or investing savings.
Yet, for many businesses, the lack of enough startup capital is one of the biggest barriers to entry. And some startups never really get off the ground simply because they do not have enough cash flow to afford what they need to operate.
Though finding someone to give you money can be difficult, it is far from impossible. And these days, the internet has made the process much more accessible than ever before. As a result, there are now many companies that specialize in providing young businesses with startup capital.
The catch is that they usually require something in return for their investment, whether it be equity or profit-sharing. However, with one of these options, you can get the money you need to run your business without worrying about giving up control.
And unlike many other sources of potential startup capital, these companies are not looking for a handout; they want your business to succeed and will provide what it needs to make that happen.
So if you’re looking for a way to fund your startup – or simply need cash to keep it going – the option is out there. And with more startups popping up daily, now is probably your best chance of finding funding.
When asked how the process of acquiring capital for a startup has changed over the years, Melick said, “The internet has made it easier to find capital, but it’s all about the deal. And they want equity.”
Asked if he would recommend looking for business loans or using an equity-based source, Melick commented, “It depends on the person and what kind of product you have. Either way, just know that there are options out there.”
He went on to say there are three key things people who are looking for startup capital should keep in mind. The first is that financing options have gotten much more plentiful than they once were, so there’s no need to look for money from just one place. Secondly, the internet makes it possible to find out what potential funding sources exist and how viable it might be to get money from them. “If it’s local or not, there are sources,” he remarked.
The third point Melick made was that to find startup capital successfully; you must be able to clearly state why you need the money and what you plan on doing with it. That way, potential investors will know right away if they think your business will be worth their time and money.