When anybody wants to look at a case study of a successful business or venture these days, the likelihood is that it’s a technology business or a web based venture. That’s just the reality of the world we’re living in right now as there aren’t that many new inventions, if any at all, which effect a revolutionary change in the way we do things. Patents are expiring and between the clones, copies and even some improvements on existing products and services, consumers generally benefit from the ensuing competition.
Either way, chances are if you’re thinking of going into business these days and you want to launch a venture, it’s probably in the tech world, an online business or one which you effectively operate as a retailer. You’re likely not going to be the manufacturer or inventor, so how do you go about funding that business or venture if it requires very high capital?
A business grant given to someone seeking to get a venture off the ground is perhaps the best way through which to get the required high capital, but the catch is that it’s really hard to get a grant. Usually governments give grants, or big corporations seeking to reduce their tax bills though these types of corporate social programmes, but it’s still really hard to get a grant. A grant generally doesn’t have to be paid back, which is why it’s perhaps the most preferred way of sourcing big capital, but you’ll have to jump through a lot of hoops burning with fire to even be considered for a grant.
Angel or Hedge Fund Investment
The next best thing in trying to source funding for a high capital venture is to head for the presentation rooms of hedge funds or angel investors. An investment from an angel investor in particular is perhaps a better version of getting a grant, but only with regards to the fact that you probably won’t have as a hard a time convincing an angel investor to part with their money as you would with your government or a big corporation. You will have to pay them back for their investment in some way or other though, such as through profit sharing or share allocation.
Otherwise hedge funds actively seek out high capital investments to make, so you could very well make their job easier by going to them with your idea or minimum viable product/service.
Creative Funding Initiatives
I didn’t mention bank loans because quite frankly I’m not a fan and banks generally don’t take risks in any case, so that’s not really an option either way. Getting creative with your funding initiatives for a high capital venture though requires just that — creativity. A great example of this is something like the welcome bonus you get from an online casino or trading platform, where they effectively match your deposit or just add some predetermined credits to the amount of money you choose to deposit to get started.
There are many possibilities and if there was a template detailing exactly how to creatively fund high capital ventures then these wouldn’t count as being creative.