More and more companies are embarking on a tech project today. This type of project usually requires raising funds for the start of the activity, which is not always easy to find. Indeed, there is a multitude of financing solutions but how to sort and choose the solution adapted to your needs?
Financing with own funds
Equity is the capital of the entrepreneur. They may be provided by the Contractor or its potential partners. These funds may also correspond to a portion of the company’s profits that are injected into cash in the form of equity. Aid via the employment center can also be used as own funds. These will be needed to call for financing through a bank loan.
This is the most common funding to date. The interview must be rigorously prepared to reassure your professional advisor. Indeed, it needs to understand in detail your activity, the protagonists of the project, the role of each one, the mode of operation of the company on the commercial part, marketing, invoicing… It is important to reassure your interlocutor and therefore of have a well-prepared business plan.
Possible grants and subsidies
There are now many aids that help entrepreneurs to support their creative project. However, it is difficult to make the inventory and choice in this maze of available help. Indeed, you must succeed in selecting the helpers to which you are eligible and choose the ones that will be the most profitable for your project. For example, BPI France can help you finance a digital project. This aid is intended for companies over 3 years and less than 250 employees.
Crowdfunding or crowdfunding
This solution is generally used in addition to another method of financing. Crowdfunding allows you to get in touch with investors, usually individuals.
This method of financing comes in 4 forms:
- The gift : the investor gives funds without compensation.
- The gift with consideration : A donation is made in return for something that has been defined in advance.
- Loan : Investors lend funds and the repayment is realized with interest. This solution is close to banks.
- Investment in the capital of companies : the entrepreneur invests money in return for action in the company or future company.
Today there are many crowdfunding platforms, often specialized in a sector or field of activity. For example, if you want to get into connected mirrors , the My Major Company platform specializes in creative, entrepreneurial and high tech projects. It is therefore important to compare them and see the results and funds raised on projects similar to yours.
This alternative is also increasingly sought for several reasons. First, business angels are investors who often have solid experience in the world of entrepreneurship or business. It has skills that can be useful to you. The investor takes you a little under his wing to move you forward and shares his network. It is important to select your business angel to ensure their experience and knowledge of your industry.