How to Get Startup Capital to Bring Your Idea to Life
Many startups rely on financial help from third parties to expand their operations. However, they don't receive these funds by chance, but because they've presented something unique and innovative that has convinced investors to invest in them. To attract the attention of investors, entrepreneurs need to show deep knowledge of the industry they operate in, point out the restrictions and potential of the market, and propose an idea that solves a real problem.
If you have an innovative idea and have mapped your potential customers, the next step is to secure the necessary funds to take your startup off the ground. Here are three ways to do that:
Friends, family, and personal resources
Initially, it's common for entrepreneurs to borrow money from family and friends. While this is a valid option, it's important to note that this type of financial support may not be enough to make your startup take off, nor does it prove that your idea will be accepted in the market. The best way to find out if your idea is really good is to raise money from the sale of your product or service. This will also help you get valuable feedback from your target audience.
Government incentive programs
Entrepreneurs can seek public resources through innovation incentive grants in institutions such as FAPESP, Faperj, Finep, and CNPq. They can also look for regional development agencies that allocate resources to innovative projects with extremely subsidized interest rates. Another option is Start-Up Brasil: National Startup Acceleration Program, a Federal Government initiative that provides selected startups with access to up to 200,000 reais in research and development grants for their professionals, in addition to participating in a series of events and activities promoted by the program for training and bringing together customers and investors.
Private accelerators
Accelerators make the process faster, and the support time they provide to a startup is, at most, six months. They are looking for startups with fast and scalable growth potential. The accelerator provides all the legal and accounting support, and entrepreneurs can focus on building the products while the accelerator takes care of all the structural and bureaucratic parts of the business. In general, the accelerator offers a financial contribution ranging from 20,000 reais to 100,000 reais.
It's essential to understand that securing startup capital is not an easy task, and each option has its advantages and disadvantages. The key is to have a solid business plan, a well-defined target audience, and a clear idea of what your startup does and why it's innovative. By doing so, you'll have a better chance of attracting investors and getting the funds you need to bring your idea to life.
