Financing your business is not something you can take lightly. You have been putting countless hours and huge effort into your startup but without enough money for operations and marketing, everything can collapse. Even if you were able to sustain your business for a while, when the time comes for you to expand, you are going to need that money! In this article, we will look into ways for you to fundraise for your startup.
There are many websites out there that can help you raise money for your startup through simple and straight forward campaigns that require no more than a decent promo video. In return, donors who contribute cash to your startup will be rewarded by you somehow. Keep in mind though that if your campaign fails to reach its fundraising goal; funds can’t be claimed. In other words, set reasonable fundraising goals if you want to get your cash in the end.
2- Angel investors
Start convincing those closest to you with your business idea and get them to commit a certain amount of cash for funding it. We at DEERasa have developed a useful software to help you create a top-notch business plan for your project which can help you with your investment pitch when you decided to approach a potential investor.
Sirb (Angel Investors Network) has a database of existing and potential angel investors looking for investment opportunities across various industries in Saudi Arabia. Check them out and submit your idea to be reviewed by their committee.
Try to use social media to attract angel investors by searching for groups and pages in your industry, actively participating and sharing related content online as well as marketing your business idea in every way possible on Facebook, Twitter and Linkedin.
3- Participate in competitions and contests
A great way to get cash is to win it. Search for competitions and contests in your industry or for entrepreneurs in your niche or any other type in which you have something to offer and apply. Such competitions often reward a good amount of cash not to mention recognition in your industry and market, something that is invaluable to every startup.
4- Personal money
This should be the number 1 way to fund your startup. If you can’t make a financial commitment to your own startup, don’t expect someone else to do so. By contributing part of your savings or all of it you prevent or at least delay the interference of venture capitalists. It is also a great way of proving your commitment and faith to potential investors.
5- Friends and Family
Look for family members and friends who might be interested in your idea, walk them through your business plan and most importantly be honest as they need to trust you with their money no matter how small their donation is.
Some of the commercial and governmental banks in Saudi Arabia such as Al-Ahli, Riyad Bank and Bank AlJazira offer ‘Kafala’, a program that aims at financing SMEs (small and medium sized enterprises). You should also try to getting in touch with local financing institutions such as the Saudi Industrial Development Fund.
Can you think of other ways to fundraise? A gala dinner maybe? Please share with us.