Fundraising can be a tricky enterprise, especially for start-ups and small as well as mid-sized businesses. However, with the right approach, and a promising growth prospect, fundraising can get easier. The key here is to present a compelling idea that assures the investors about their money being spent well.
To that end, there are countless avenues that organisations can explore for financing purposes. However, some fundraising ideas are better suited for corporate requirements than others. For instance, with KredX, businesses can raise funds quickly by leveraging agreements, and more for upfront growth capital solutions.
Companies can acquire funds based on their recurring monthly or annual revenues. It allows businesses to access substantial funds, which is ideal for growth and expansion purposes.
To avail this financing option, companies need to present their financial statements to potential investors who then forward a sum, based on their assessment and the borrowers’ requirements.
It only takes a short while for companies to avail funds via revenue-based financing with KredX.
Businesses can leverage lease contracts or future rental receipts to avail funds. The sum a business can raise against such agreements, depends on its value. Apart from that, the repayment tenure is also based on the remaining validity period of such a contract.
Technically, this way, businesses can avail the cash tied up in an agreement ahead of its time, to finance large-scale endeavours. It involves the borrower who is submitting a lease contract on the financier’s portal, where accredited investors assess it, and subsequently the cash is disbursed. The simplicity of this process makes it an ideal financing solution for several businesses.
Budding companies and new businesses often host fundraisers to acquire the initial capital. Typically, the fund is raised through entry fees to take part in the event and is attended by family members, friends, former colleagues, known business associates, and preferably potential investors.
Aside from the primary objective, these events also provide the opportunity to gain grounds with venture capitalists, and also the investors who are looking for promising enterprises. Hence, these events are an excellent fundraising idea for the recognition it offers, to the hosts as well.
Events and competitions for start-ups are also an excellent way to raise funds. Winning such events comes with huge cash prizes, and helps in gaining recognition of top investors. Also, the cost involved with this fundraising idea is minimal, but the returns can be huge.
A start-up first needs to provide an executive summary, which is a brief of the business plan, to enter a contest. Upon selection, the organisation will be invited to the actual event where they need to present their business plan.
Companies can use email campaigning as a fundraising idea to attract investments, from organisations or individuals who have already shown an interest in their work. Also, emails, especially the customised ones, are an excellent way to engage with potential investors, since they add a personal touch.
While these are the most viable fundraising ideas, the scale of the event mostly determines how much capital a business can raise successfully.
A business has several options at their disposal, when it comes to raising funds. One can stick to traditional methods like revenue-based financing or go creative with alternatives, such as fundraiser events. In any case, it’s essential for any organisation to conduct a thorough cost-profit analysis of different ideas, to choose the most optimal one.