Start With Family, Incubators and Crowdfunding Sites

By Kevin Colleran

One of the very first hurdles that a new entrepreneur faces is how to find the initial capital necessary to fund the process of building a company. Most entrepreneurs begin using their own money for the initial costs. Eventually, however, the time comes that it no longer makes sense (or is no longer possible) to continue doing this. At this point, entrepreneurs need to figure out a strategy to raise the funds necessary while minimizing disruption of day-to-day business operations. If done incorrectly, fundraising can be incredibly distracting and difficult for the entrepreneur, and can slow any initial momentum that the business has attained. The best options for finding initial angel and seed investors are friends and family, incubators, professional investors and crowdfunding.

5 Key Points To Know About Equity Crowdfunding

By Tanya Prive for Forbes

In April 2012, President Obama signed the JOBS (Jumpstart Our Business Startups) Act, aiming to revitalize opportunities for entrepreneurs, startups, and small businesses; e.g. America’s main job creators. Briefly, main benefits of the JOBS Act as it is now are as follows.

The JOBS Act will enable entrepreneurs, start-ups, and small businesses to raise funds and gather investors through equity crowdfunding. It will reopen American Capital Markets to Emerging Growth Companies (Companies with total annual gross revenues of less than $1 billion). It also lifts the ban on general solicitation/advertising; allowing entrepreneurs, start-ups, and small businesses to advertise for new investors, and assures that these businesses will have the necessary time and flexibility needed to grow.

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