Looking for seed funding for your new project? Do you know it could be a relatively easier thing if you take the right steps? The first place to look for seed funding is at any lawyer’s office and if you take the time to ask, you will find nearly every lawyer or accounting firm have many clients on their books and a good percentage may have expressed an interest in assessing start-ups to offer seed funding.
In order to secure seed funding, you will probably realize there are more people with money looking for exclusive and productive business ideas than there are people out there looking to find private investment so the equation is heavily stacked in a budding entrepreneur’s favour.
There is not a snowball chance in hell that you will receive a cent of seed funding if you are not convincing and your concept is worthy. Simply because there many people who consider your idea as they are all looking to make a higher annual return, it doesn’t mean they will invest if they are not convinced of two things.
The first one is clear roadmap to that they will get their money back at all. The second one is that the return on investment.
When they are at all convinced that an investment in you and your business concept will at least get them their money back at some predetermined time, that they will get a respectable enough return to cover the risk they took, they will consider for seed funding in your business project.
These two aspects are the main motivations of the most investors as they are typically prudent and very careful with their capital.
Seed funding capital is in high demand, there are literally hundreds of investment groups looking for it right now and only three or four handfuls will receive any significant amount of it.
See Fund Sources:
Source #1: High Net Worth individuals (accredited investors) who are familiar with your trading skills, past portfolio management experience, or clearly understand your competitive advantage in the marketplace.
Source #2: Family & Friends who are accredited investors.
Source #3: Private Equity Firms. Many private equity funds have jumped into the space of seeding hedge funds and many will in turn work on raising assets for your fund once it will benefit both your fund and themselves.
Source #4: Hedge Funds. Some hedge funds have huge amounts of free cash flow and are looking for ways to re-invest it within strategies they understand and do not directly compete with products that they plan to create on their own
Source #5: Associated banks or investment networks will often seed new hedge fund products they are launching with significant levels of capital.
Source #6: Personal Savings or Bootstrapping
Source #7: Corporate Seed Funds
Source #8: Incubators
Source #9: Accelerators
Source #10: International Philanthropic Impact Investors
Source #11: Micro VCs The timing of raising seed fund can have a huge impact on the outcome. Before deciding on the appropriate timing, founders and entrepreneurs need to be ready with a clearly-defined business model and plan, market research and roadmap for product development.