9/30/2016

Angel,VC,Crowdfunding,orBootstrap?

Angel,VC,Crowdfunding,or
oottrapWhichFunding
ModeliRightforYou?

3pContriutor(http://www.triplepundit.com/writer/)onMonda,ep17th,2012
HAR

(http://www.triplepundit.com/2012/09/angel-vc-crowdfunding-bootstrapfunding-model/?share=twitter&nb=1)
(http://www.triplepundit.com/2012/09/angel-vc-crowdfunding-bootstrapfunding-model/?share=facebook&nb=1)
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(http://www.triplepundit.com/2012/09/angel-vc-crowdfunding-bootstrapfunding-model/?share=google-plus-1&nb=1)
(http://www.triplepundit.com/2012/09/angel-vc-crowdfunding-bootstrapfunding-model/?share=email&nb=1)
(http://www.triplepundit.com/2012/09/angel-vc-crowdfunding-bootstrap-

funding-model/#print)

ChritaAvampato
Youvegotouruineideanaileddown.Youhaveatalentedteamlinedup
ehindit,andperhaphaveaworkingprototpewithfeedack.Now,ittimefor
fundingtotakeourideatothenextlevel.
Notallfundingourcearecreatedequal.Infact,dierentourcearerightfor
dierententrepreneuranddierentuineidea.Hereaquickanddirt
reakdownofcommonfundingpoiilitieforouruine:
Angelinvetment

Whatiit?

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Angel,VC,Crowdfunding,orBootstrap?

Whatiit?
Anangelinvetor,exactlathenameimplie,helpagoodideagetotheground
providingthenecearcahforlaunch.Inreturnfortakingthirik,theangel
tpicallreceiveapieceofownerhip,orequit,inthecompan.Angeltpicall
haveafairamountofperonalwealththattheuetofundideathattheelieve
canandwillturnaprotomewheredowntheline.Theareoenentrepreneur
themelveandarethereforeuuallarichourceofadvice,counel,andcontact
forearltagetartup.
Whoiitrightfor?
Angeltpicallprovidetheeedfundingforanidea.ntrepreneurwhoare
comfortaleharingomeownerhipovertheirideacangreatlenetfrom
havingtherightangelinvetor.
Wheretondit
ecaueangelaregivingtheirownmonetofundaproject,thereinta
clearinghoueorexchangeofankindtowhichanentrepreneurapplie.Angel
areoenfoundthroughreferralandnetworking,whichincludeeverthingfrom
endingaperonalletterofinquirtomeetingatanevent.
VentureCapital
Whatiit?
Unlikeangelinvetment,venturecapital,orVC,fundingiprovidedthrougha
profeionallmanagedfundanditpicallforalargeramountofmonethanan
angelinvetment.VCfundinguuallcomeintoplaaerauinehagotten
othegroundandneedfurtherfundingforexpanion.Thealmotalwa
requireahighamountofequitfromcompanieinwhichtheinvet.
Whoiitrightfor?
ntrepreneurwhofeelcomfortalewithpartingwithaignicantequittakein
theiruinemandthatVCfundingiagoodourceforthem.ecaueVC
takealargeequittake,thealohavequiteaitofcontroloverthedeciionmakingproceoftheuineathehopetoturnaizaleprotfromtheir
invetment.Therealizethiprotwhenthecompanioldtoomeoneele,o
thegoalofVCitogrowandthenellauine.
Wheretondit

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9/30/2016

Angel,VC,Crowdfunding,orBootstrap?

Wheretondit
Likeangelfund,attainingVCfundoencomethroughreferraland
networking.ManVCfundoenholdeventatwhichentrepreneurpitchtheir
ideainthehopeofpiquingtheinteretofaVC.
Crowdfunding
Whatiit?
Crowdfundingdecrieateminwhichmanpeoplegivecomparativelmall
amountofmonetohelpfundanidea.Thereiuuallnoexchangeofownerhip
withcrowdfunding,thoughthiieginningtochangelowl.Theideaof
crowdfundingpredatetheinternet,howeveritreallecameapartofpopular
culturewiththehelpofonlinenetwork.Crowdfundinginotlimitedto
uineeandialouedtofundnonprotorganizationandcharitaleact
thatneverexpecttoturnaprot.
Whoiitrightfor?
Awidevarietofideaandorganizationarejumpingonthecrowdfunding
andwagon.Frompoliticalcampaigntononprottomalluineto
individualwhowanttocreateomethingnewintheircommunit,crowdfunding
engageanaudiencethathaalotofpaion,evenifthelackignicant
individualnancialmean.
Wheretondit
WiththeucceofKicktarterandKiva,mancrowdfundingitearepoppingup,
omepecializinginpecictpeofcrowdfundingrequet.Foralitingofthe
top10crowdfundingplatform,checkoutthilinkfromPlantotart
(http://plantotart.com/10-crowdfunding-weite-entrepreneur/).
oottrap
Whatiit?
impl,oottrappingtpicalldenetheueofperonalfundawellathoe
fromfriendandfamiltolaunchanidea.Itifartheleatexpeniveandmot

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9/30/2016

Angel,VC,Crowdfunding,orBootstrap?

pervaiveformoftartupfunding.oottrappinginotjuttheourceofmall
operation.DellandFaceookothreceivedtheirinitialfundingthrough
oottrapping.
Whoiitrightfor?
ChriGuilleeaurecentook,The$100tartup(http://www.amazon.com/The100-tartup-Reinvent-Living/dp/0307951529/ref=r_1_1?
ie=UTF8&qid=1347659185&r=8-1&keword=%24100+tartup),championthi
kindoffundingforjutaouteveronewithanideathatthewanttoprototpe
andtet.
Wheretondit
Looknofurtherthanourownankaccountorourimmediatecircleofcontact
toraieaitofmoneforourtet.
Thiiariefrundownofcommonfundingourcefornewidea.Ofcoure,there
areotheruchagettingaloanatourlocalank.Toidentiftherightfunding
channel,undertandthedierenceetweenthedierenttpeoffundingand
moreimportantl,knowwhatkindofentrepreneurouareourcomfortlevel
withrik,ailittotakeandactonfeedackandadvice,anddeiretohare
ownerhipofouridea.Allmonecomewithtring.Makeuretheretring
oucanandwanttolivewith.
ChritaAvampatoiauinetrategit,writer,andogaandmeditationteacher
aedinNewYorkCit.helogdailaouttheartofcreativelivingatChritaInNew
York:CuratingaCreativeLife(http://chritainnework.com/)andianadviorfor
LaunchHoue,auineacceleratorandeedcapitalfund
(http://www.launchhoue.com).
image:MiguelAngelLopezTrujillo
(http://www.ickr.com/photo/lopeztrujillo/5946605127/)viaFlickrcc(ome
rightreerved)

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