Posted: Fri 28th Apr 2017
The past five years have been filled with innovation when it comes to new sources of business funding so every month this year we're profiling the new options and other sources of finance for your business. Part one is here, part two is here and part three is below.
If you can't wait for the remaining parts, download the full 19 page A-Z guide to funding here.
Large corporates are increasingly opening accelerators and launching funds to back small business. As the name implies, accelerators offer an accelerated process for start-ups to help get products to market. Some offer financial backing as well as access to a global customer base.
Collider is one such accelerator and outlines its reason for being: "Collider is an accelerator dedicated to marketing and advertising startups. We invest capital in these startups, we coach them through a highly structured programme and we connect them to potential corporate customers and investors. The aim of the game is to help these startups become sustainable, rapidly growing businesses."
Other well known accelerators include Telefonica's WAYRA, Tuestart, The Bakery, Cisco's IDEAL, Microsoft's Accelerator and Stuart Marks' portofolio including JLab, the John Lewis digital accelerator.
Many have a sector focus so research the accelerator that's right for you and be in with a chance of securing investment or custom from a global brand.
Credit cards have been the funding foundation for many a bootstrapped young business. But only opt for one if you're confident of paying off the balance within the interest-free period. Visit comparison sites to access the best deals from the main providers.
Crowdfunding has had a significant and positive impact on a small business owner's ability to raise money. According to crowdexpert.com over $34bn was raised through crowdfunding in 2015. This figure looks set to keep rising.
There are three main types of crowdfunding:
Reward: People fund your business in exchange for rewards
Equity: The crowd invests in your business in exchange for equity, i.e. a percentage of the business
Loan: You raise a loan and repay with interest
In raising funds from the crowd, not only do you secure the capital you need but you also attract attention and an audience of potential customers.
As crowdfunding has become more popular, the number of crowdfunding platforms has increased.
The main platforms in the UK are:
The Show me the money! campaign is supported by: