Top 3 Places to Look for Money

Submitted by Ashkan on Mon, 03/15/2010 - 9:32am

As you all know, Massachusetts is putting their best foot forward in an attempt to help Entrepreneurs launch successful businesses. Programs such as Stay in MA, Mass it’s all here, and MassChallenge are working on jump starting the startup eco-system in the common wealth.


So as an Entrepreneur, you have gathered your team, built your prototype, and now hungry for that instant growth substance called “Cash”.


In my previous post, “The Next Generation of Launching Your Company” I explained a roadmap that got you ready for Venture Capital investments. This week, let’s look at a few alternatives:


1.    University Incubator Programs: If you are a student, check out the resources that are provided for Entrepreneurs. This should be your first stop in gathering funding and resources; put your tuition dollars to work! Understandably, some of you are not students at the right University, but it does not matter! In most cases programs, such as the ITEC program at Boston University, the IDEA program at Northeastern University, and the E-Tower at Babson College, only one individual from the team  has to be from the founding school. All these programs have been designed to help guide and provide resources for Entrepreneurs at their respective school; all for $0, so take advantage of it, since its all for FREE!!!


Let’s say you’re not a student and do not know anyone in school, you can still participate and win competition money in programs such as the MIT 100K Competition. The MIT competition has been around for about 20 years and has funded a variety of different companies with a few extremely successful ventures. For more information, please be sure to visit their site.


2.    Outside Incubator Programs: These are programs that infuse low amounts of capital into companies which allow them to get off the ground. A few notorious examples include Y-Combinator, TechStars, and Summer at Highland which is currently under reorganization.


These programs are organized around providing you with seed capital and mentorship to help grow and launch your company. The vast network and ability to work with seasoned Entrepreneurs gives the teams a great opportunity to learn, grow, and become successful. While they do take a small percentage of ownership ranging from 5 to 10 percent; it is definitely worth it. 


Other local Incubator type programs include: BetaSpring and VentureWell.


3.    State and Federal Programs: As I initially mentioned the state and the country as a whole is providing dedicated support for their Entrepreneurs. MassChallenge’s extensive competition will be officially launching on April 7th, 2010 so stay tuned for their updates.


Check out the financing page of Business.gov a great website that helps you navigate the funding opportunities that the state and government is currently providing. The administration is attempting to do their part in helping small businesses grow, take of advantage of these FREE grants to help start your venture.


The tools and resources are right in front of you, but only you can gather, prioritize, and use them.


Good luck!


Do you know any other great funding resources? Please share them below.


If you have any other questions, send me an email or post a comment.
Ashkan


Ashkan[at]greenhornconnect[dot]com

photo credit: http://64972.inspyred.com/images/BestFootForwardMain.jpg

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Discussion

Usually, this is the common

Submitted by Treyl on Wed, 03/17/2010 - 2:41am.

Usually, this is the common concern of not only entrepreneurs but also individuals. Everyone needs some short term financing at some point – it's a part of life (and it sucks!) and if you use a bank loan or credit cards, one has to wonder what they can do to avoid dings on their credit score.  Well, you can basically slash your budget to the point that you maximize all savings so that you can weather emergencies.  (That's probably a smart thing you should do anyway.) You can use credit cards, and there are always instant payday loans if you so choose.  Unlike credit cards, they pose no risk to your credit score, but they do carry higher fees, so you have to be careful in how much you ask for.