5 Strategies To Find Capital For Your Business

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Apart from the traditional ways to raise capital, such as the banks, venture capital or private equity firms, as well as putting in your own cash, there are different ways to consider. We summarize 5 strategies which you can consider to enhance your business.

Strategy 1: Apply for export grants and incentives

Export grant is the first strategy that comes to our mind, export grants are available across different markets even down to states or cities.

There are different types of export grants available, some are lump-sum payment to you to set up exporting opportunities, some are dollar-for-dollar basis, where you can claim your export related expenses such as travel, marketing and manufacturing cost. There are also export loans available where you can borrow the funds at very low rate and utilize them for exporting basis.

Strategy 2: Apply for industry innovation grants

Industry and innovation grants are worth considering. Green industries are in demand at moment, and there are various grants available around the world. Some are administered by government departments, some are available from industry associations, and some are also available from industry conglomerates.

As an example, one of our clients applied for an industry grant in Australia as they created a water-saving technology for the mining industry, which is applicable to Australia’s mining industry. Another client had received an industry grant from Chicago university for his development in energy efficient technology.

The dollar amount can vary significantly, sometimes this can be quite substantial for a start-up company, and more importantly, it also gives access to the key contacts in the industry as well as recognition.

Strategy 3: Apply for grants in international markets

As discussed under strategy 2, one should really consider opportunities in global markets these days. Certain applications / technologies have higher success in receiving grants. As used earlier, water conservation / water management technologies are in good demand across Australia, Asia, Middle East and there are industry grants available for related developments.

As another example, there are grants available from industry giants in the oil & gas sectors in the United States, where they will fund through grants into oil recovery technologies.

Strategy 4: Crowd Funding

Crowd funding is an interesting concept. Crowdfunding is becoming a significant market as private investors start to embrace Internet. There are now dedicated crowdfunding websites everywhere in the world, where you can pay a submission fee and upload your business plans on these sites, which then they will send out to their members.

Some have been very surprised by the effect of this type of approach – while investors are usually put in small amounts ($10,000 to $100,000) compared to institutions – some of our clients have received enough funding to go to the next phase.

One example we had seen was a financial company which was raising capital to set up a private private equity firm in China, they raised $3m from crowdfunding, which was enough for them to make the first 2 investments,

Strategy 5: Contact executives of your industry

Industry executives are often active investors into other aspects. They may not appear on the rich lists, or as directors of venture capital firms; but they are the type of investors you should not ignore.

Industry executives tend to invest in industries that they are most familiar with. As an example, it is very common to see a Chairman of a biotechnology company is also present on many other biotech companies, the same also applies to the mining / resources sector.

As part of the investor marketing program, we helped our clients to identify and contact the industry executives around the world, and send them introduction about the opportunities. Sometimes this can result in very significant outcome, especially in the mining, real estate or the biotechnology sectors.

We hope you find this article of use to your capital raising journey.