Getting Very Early Stage Financing

Published: 4/16/2008 2:31:40 PM

What do you do if your company is at such an early stage that you barely have an "alpha" version of your product, yet you need financing in the $50,000 to $500,000 range?

These days, it can be tough.  Venture capital fund sizes are only getting larger, as they invest more in later stage companies while leaving the early stage behind.

The most likely option is to find an "angel" investor, or perhaps an angel group.  Angels invest something like $25 Billion per year in new companies.

How do you find them?  Try existing "pitch" conferences, where they go to look for the latest promising companies.  Find a well-connected attorney or CPA, who has other technology clients, and ask them for introductions in return for using their services when needed.  Of course, you can also use databases like VentureDeal and others to search for angel groups.

"Matchmaker" web sites that pull together entrepreneurs and investors are potentially good, too.  Just be careful to steer clear of the scammers lurking in some of those services.

Don Jones



Don Jones
CEO, VentureDeal

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