Venture Capital Funding
You have a passion, a dream, and you want to turn it into a viable business but don’t have resources or market know how?
What does a startup need to survive and thrive?
Since startup companies lack many resources, experience and networks, incubators provide services which helps them get through initial hurdles in starting up a business.
These hurdles include space, funding, legal, accounting, computer services and other prerequisites to running the business.
That’s why more and more startups are turning to business incubators for support.
More often than not, entrepreneurs utilise these programs too late in their business development, when there is less or no opportunity for flexibility or change.
Why not earlier? Probably out of fear that their big market disruption idea be expose and be implemented to the benefit of someone else “Stolen”.
Business incubators differ from research and technology centers in their dedication to startup and early-stage companies, its hallmark is that it offer business assistance services to turn weak business into strong viable business.
It providing startups clients with services on a ‘one-stop-shop’ basis and enabling overheads to be reduced by sharing costs, business incubators significantly improve the survival and growth prospects of new start-ups.
Incubators can tap into their networks of experienced entrepreneurs and retired executives, who can provide management guidance and operational assistance.
Startups usually benefit from having respected individuals on their boards of directors and advisory committees, because these individuals bring invaluable connections and experience to the table.
Startups can also take advantage of lower lease rates if the incubator is located in area that offers low rental fee. Incubators may also help startups with their financing needs by referring them to angel investors and venture capitalists, and helping them with presentations.
Startups may have better luck securing financing if they have the stamp of approval of incubator programs.
Even after the start-ups leave an incubator, the connections and networks established through these relationships can endure for a long time.
Startup entrepreneurs can provide encouragement to one another, and employees may share ideas on new approaches to old problems.
Startups may plan joint marketing campaigns and cooperate on product development initiatives.
These synergies do not necessarily exist among startups funded by venture capitalists, because, the companies that receive the funds do not necessarily know one another and they may be located in different geographic locations.
You can also read about: 7 Things Venture Capitalists Look For in an Startup Investment Opportunity
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