Three Ways The Internet Has Made It Easier To Get Startup Funding

by Justin on October 14, 2015

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The idea of investing in a new or emerging business is something that intrigues business people all over the world. Before the Internet gave business an accessible global platform, it took entrepreneurs quite a while to secure funding that did not come from a bank. Entrepreneurs had to do their research to try and find people who would share their business dreams, and had the financial means necessary to help make those dreams come true.

It is easy to say that the Internet has made communication more efficient. But there are specific ways that people with business ideas are able to connect with investors who can help turn those ideas into realities. The days of entrepreneurs being forced to rely solely on a bank for startup funding are coming to an end as the Internet has made it much easier for the dreamers and the financial backers to share ideas and get a company off the ground.

Angel Investor Networks

Angel investors are prominent business professionals, such as Bob Bratt, who have financial means and want to use those means to invest in a startup idea. One of the reasons entrepreneurs try to communicate with angel investors is because these types of investors are more inclined to listen to business ideas that traditional lenders discard.

Angel investor networks are websites that allow people with business ideas to connect with people who can fund those ideas. One of the significant advantages to an angel investor network is that it allows investors to read comprehensive business ideas from entrepreneurs, and make decisions based on real information.

Peer To Peer Funding

Angel investors are convenient because they are a single person or group that is offering to fund a business idea. One of the innovations that the Internet has helped to create in the business funding world is the idea that if you cannot find one person to fund your business, then you can go out and talk to thousands of people and get your startup funding from a group.

Peer to peer funding is similar to angel investing in that entrepreneurs are seeking startup funding from private individuals. The difference is that peer to peer funding is often done through a collection of separate people, as opposed to one person or entity. Once the entrepreneur has convinced enough lenders to contribute to the startup fund, then the business planning can begin.

Direct Contact

Perhaps the most significant way that the Internet has made it easier for entrepreneurs to find lenders is by offering a platform for direct contact. An entrepreneur can publish a website of their business idea, and then start promoting that site until they find the right investor. Through the use of blogs and message boards, an entrepreneur can reach a wide audience and increase their chances of finding an investor.

Social media also makes it easier for entrepreneurs and investors to connect. Professional networking websites offer the ideal platforms for people with business ideas to find the right people to invest in those ideas and get their business off the ground.

Before the world had the Internet, it was difficult for entrepreneurs to find investors who would help get their business ideas off the ground. Now that the Internet has brought the world together, entrepreneurs have a myriad of choices when it comes to financing their startup idea.

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