• Tamara

Everything you need to know about getting funds

This chapter is an introduction to fundraising. It answers the following questions:

  • Where to get money for a startup?

  • What are the different stages of fundraising?

  • What are the different forms of fundraising?

  • Who are the different types of investors?

  • Where to find investors? (investor lists for Switzerland & Europe)

  • What do investors look for?

  • What is the investment process and how long does it take?

Where to get money for a startup?

When thinking about getting money for a startup, we traditionally think about fundraising. However, before going into that, let's explore where else startups can get money.

Bootstrapping: building the company from the founders' savings as well as from the cash coming in from sales. Below is a small video with tips for bootstrapping done by EPFL Innovation Park and with Jean-Guilhem Chiariny, CEO of FeedBackNow. He talks about the advantages of bootstrapping, other sources of financing and optimizing Cash-Flow (something very important especially when bootstrapping).

Reward crowdfunding: this form of crowdfunding, or raising small amounts of money from a large poop of "investors", means that you are sending your product in exchange for money. It is almost like a marketplace where you can sell your products. Typical reward crowdfunding platforms include Kickstarter, Indiegogo, wemakeit and Crowdify.

Grants, prizes & competitions: governments and associations organize competitions to foster entrepreneurial activities. You can win small and large amounts of money without giving out any equity.

Loans & debt crowdfunding: loans can be from banks (usually inaccessible for startups) or from debt crowdfunding (usually for later stage startups) such as Swisspeers and Acredius

Revenue-based financing: is a form of debt fina