They often say it takes money to make money, so what do you if you have nothing to start with? That’s not a problem in this day and age, where Web 2.0 websites like San Francisco-based Prosper and British site Zopa offer loans from complete strangers. At these person-to-person lending sites, you post the amount you’re looking for and the interest rate you’re willing to pay, and strangers will bid on lending you money.
If you don’t like the idea of borrowing from complete strangers, then look towards your family and friends. Who else would have more faith in lending you money for that crazy idea of yours? Circlelending makes things official and easy collect.
Angel investors and venture capitalists are another source to tap for funding. Try TechStars or Y Combinator, both of which offer $15,000 to $25,000 in seed funding for startups, in exchange for a bit of ownership in your new company.
** Update **
I just found a story about two guys who were in the Y Combinator program, who’s 6 month old startup, “Zenter” got bought by Google!
I’ve used Zopa for a couple of small loans. The rates are often better than what you can get at a real bank. Last one for me was only 5.5%!
I try not to borrow from friends since I rather not mix business with friendship. ;)
True, friends and money don’t go hand in hand
Yes, you dont want to ruin a friendship over business.
I’d be giving my ideas to them to start up a demo for the next Web 3.0, Entrepreneur, here I come!
Just need the right accountant to help you out.
“True, friends and money donĂ¢â‚¬â„¢t go hand in hand”
absolutelly true
I disagree about friends and money not going hand in hand. I’ve been on several business ventures with friends that worked out just fine… probably worked out even better because they were my friends and we worked better as a team than strangers would.
As far as borrowing money from friends, as long as you agree to pay back at a set time, I honestly don’t see a problem.
If you’re having friends “invest” in your company however, I would let them know up front that there is a risk, and it’d be up to them if they still want to help out or not.
I just found a story about two guys who were in the Y Combinator program who’s 6 month old startup, “Zenter” got bought by Google!