New Tips: How to Raise Seed Capital and Grow Your Startup

New Tips How to Raise Seed Capital and Grow Your Startup

You already know the definition of Seed Capital or Seed Funding, but today Cambodia Time would like to explain more about the types of Seed Capital or Seed Funding.

Here are eight sources of income that are considered Seed Capital or Seed Funding:

1. Crowdfunding

Crowdfunding is the raising of funds from many investors to obtain financing for a new business venture. Crowdfunding makes it easy to raise funds from a network of close people or acquaintances, or possibly through social media and some websites to provide new business ventures with working capital, as well as provide opportunities for investors. Invest for profit. It can create entrepreneurial potential by expanding investors beyond relatives, family and friends into shares, helping to run a business and run a business beyond tradition. At the same time, investors will also have the opportunity to make a profit from the modern investment of this new business.

2. Corporate seed funds

Corporate seed funds are capital that comes from a large company or corporation or a large company that is looking for investment opportunities from start-ups and they will invest for profit in the future because they see the potential. And the growth momentum of that startup business.

Related: Cambodian Entrepreneur Reveals Keys to Success in Business

3. Incubators

Incubators generally provide capital for start-ups or small start-ups through the provision of service assistance or co-working space or business-related training. Most programs organized by Incubators, or Incubation Programs, provide support and assistance to the business process and encourage more competition. This business’s approach is especially to encourage businesses to innovate, strengthen and keep up the evolution of technology.

Related: How can you start a business before the age of 25?

4. Accelerators

Accelerators are a business accelerator and are essential for any startup or startup. Accelerators advocate for businesses to get the opportunity to scale their business as a direct financial aid provider. Their support comes through learning business management, business professionalism, networking opportunities with key individuals and business people in society, mentor training, as well as the venue. Business, too. Unlike Incubators, Accelerators can afford to provide private financing for business owners.

5. Angel investors

Angel investors, also known as wealthy private investors, can provide financial support for potential start-ups or small businesses in terms of stock exchanges or shareholders in companies or categories. Convertible debt. The term “Angel Investor” is used to refer to an investor who helps to run a business in the early stages because it is a time when the business is at high risk and prone to collapse.

6. Personal Savings

It is common for founders to use their own savings as capital for running a business, although this can be a bit daunting and stressful for the founders, but it is a big benefit because they will not face debt or repayment any money.

Related: Good Debt vs. Bad Debt: What’s the Difference?

7. Debt Funding

All debts borrowed from the bank from friends, family or anyone to run a business are all types of Debt Funding.

8. Convertible Securities

An investment in the form of a loan, but converted into shares according to the company’s processes and regulations and / or when the company’s sales target is achieved.

9. Venture capital Funding

Venture capital is a form of private equity and financing that investors provide to start-ups and small businesses, believing they will be profitable with long-term growth potential. Venture capital generally comes from well-off investors, investment banks and financial institutions, and it provides not only direct financing (in monetary form) but also provides start-ups in the form of additional techniques and management skills. Venture capital is also allocated to small businesses with high growth potential or to companies that are growing rapidly and continue to expand with potential.

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