Why you need funding

Even if you’ve chosen to bootstrap your startup, the importance of contemplating company funding cannot be overlooked. Why is this critical?

I had already posted a few months ago whether obtaining investment money from investors was a necessity. The primary resistance to securing investment money is its elevated cost, further amplified by the time and effort it takes to raise money.

Recognizing the need for external investment emerges when your startup is targeting big markets inhabited by incumbent industry giants. Strategic funding presents a unique angle to the pursuit of startup investors. Once they invest their capital, these investors commit themselves to your success, pulling every conceivable leverage and stretching every effort to guarantee it—after all, their hefty ROIs depend on it.

Regardless of the presence of investment money and an absence of need for financial help, bringing investors onboard can still prove advantageous for the reasons mentioned, in addition to hedging against potential downturns—a common risk in startups.

If your enterprise is an online business, it is advisable to work towards generating traffic and sales/revenue before seeking investment. This strategy provides a clearer picture of your financial requirements and their allocation.


Dealing with investors often turns into a full-time job for many founders, who sometimes feel their time could be more productively spent enhancing their product and directing their attention towards marketing. In such instances, considering alternative funding means for your startup might be beneficial.


Kickstarter – Well-known worldwide as a financial backbone for innovators, Kickstarter stands by artists, musicians, design thinkers, and creative marvels for constructing a supportive, interactive community. Its prime focus ideally leans towards ventures resulting in physical commodities, though web-based projects and software are not entirely excluded

Indiegogo – Often regarded as a main challenger to Kickstarter, Indiegogo follows a unique crowdfunding method. The allure of this platform lies in its feature of transferring all pledges, regardless of whether the funding target has been met. It attracts a range of potential supporters and embraces a plethora of diverse projects.

CrowdEngine – In comparison to front-end services provided by Indiegogo and Kickstarter, CrowdEngine offers a backend to launch your personalized crowdfunding portal. It offers custom solutions to a variety of sectors and funding possibilities, extending from real estate to private-equity.

StartEngine – An ideal convergence point for burgeoning startups and potential investors, StartEngine creates new prospects for both parties. After setting up an investor profile, one can scout online businesses seeking funding. It functions as an Equity Crowdfunding forum, which sets it apart from conventional crowdfunding platforms like Kickstarter and Indiegogo.

Republic – A formidable contender in the startup realm, Republic fulfills dual roles as a funding portal and a SEC-registered broker-dealer with FINRA membership – a testament to its legitimacy. Republic aligns itself with platforms like AngelList and Product Hunt in offering opportunities to both startups and investors.

Wefunder – Built for those who prefer value-driven investment over profit piles, Wefunder lets you be part of a more impactful cause. Living up to their slogan, “Invest for the Right Reason,” Wefunder emphasizes the human touch in investments.

MicroVentures – Bridging the distance between venture capital and crowdfunding, MicroVentures provides a distinctive platform allowing accredited and non-accredited investors access to startup investments. For newcomers, this platform resembles a crowdfunding campaign but with the unique advantage of attracting investments from venture capitalists.

Revenue-based financing

Lighter Capital  – An enticing option for startups generating revenue, Lighter Capital offers startups loans and credit lines, potentially a cheaper alternative to giving up equity for fund raising.

Clearbanc – Topping its peers with clear merits, Clearbanc furnishes startup funding without demanding equity in return. Their unique proposition lies in utilizing data science for spotting high-growth funding opportunities. By pairing data and data science principles, they perform a thorough evaluation process for startups.


Brex – This is Mastercard product that provides some breathing room to startup founders. Easier approval porcess with high-security product. They also have tailored offerings for specific industries, like e-commerce, for example.


When scouting for capital resources, there’s an abundance of alternative routes for founders of startups, diverging from the standard path of seeking help from angel investors or venture capitalists.

Indeed, while investor funds often come with higher costs, there can be scenarios where such capital remains the solitary option at hand.

However, startups should not overlook the potential of diverse strategies beyond traditional investor involvement. Crowdfunding, for instance, comes with its own set of merits. Among its compelling advantages is freeing the founders from the time-consuming process of establishing and maintaining relations or organizing in-person meetings with likely investors.

Funding acquired via crowdfunding platforms also offers another subtle yet valuable benefit — validation. This endorsement serves as a vital advantage and creates an appealing side effect.


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