Newchip Accelerator Publishes Guide On How To Fund A Startup
Newchip Accelerator, a startup accelerator based out of Austin, Texas, is reaching out to the wider community to share their guide on how to fund a startup. Newchip Accelerator is dedicated to providing founders with all of the tools and skills necessary to fund, build and scale their startups.
Keagan Wernicke, a representative for Newchip Accelerator, says, “More often than not, great ideas never see the light of day because they don’t have the funds. You may have been in such a situation yourself. Maybe you’ve come up with a killer idea for a company that you know will be a hit with your consumers and you’re excited to get out there and start building your company but there is one big problem: you don’t know how to fund a startup. Fortunately, there are a number of ways to tackle this problem, and this is exactly what our new guide explores.”
As Newchip Accelerator explains, there are many different ways to fund a startup. In a recent blog post, the company dives into some of the most popular options and gives new founders some essential tips for raising money for their startup.
The first (and most straightforward) way to fund a startup is to get financial help from a suitable source. After all, borrowing cash when it is needed is a relatively easy process. However, when it comes to startups, there may be some obstacles — some small businesses (and especially startups) do not qualify for traditional bank assistance.
In such cases, more creative methods are needed. One such method is crowdfunding, which has become more popular lately with the rise of popular crowdfunding websites and the passing of the JOBS Act. Crowdfunding can be a potent and organic method of raising money for a startup. The online startup accelerator points out that a good tip for crowdfunding is to focus on the advertising as early as possible. However, if crowdfunding is chosen as a method, the startup needs to communicate to their customers precisely what they want to produce and how they are going to produce it.
Newchip Accelerator also warns anyone seeking to found a new startup through crowdfunding to be careful of some crowdfunding sites as they sometimes will require that the campaign raises the full amount that is being sought to keep any of the money. Additionally, founders also need to be aware that they will be on the hook for anything they say during the crowdfunding campaign.
Another option is to get an advance. As the blog post explains, some companies will give startups a cash advance in return for royalty payments. This is, in some ways, better than getting a loan because there is no need to repay the same amount of money with interest. As long as the royalty is not too high and does not end up being a drain on the resources of the startup, this is a very good option.
A good alternative is to find an angel investor. Also known as venture capitalists, angel investors invest in businesses in exchange for a share of the company’s equity. There are even a number of popular TV shows where venture capitalists seek new products and startups to invest in. These investors can not only provide a startup with funds, they can also provide them with valuable experience and connections. Newchip Accelerator recommends that founders apply to multiple angel investors to find the right partner for their needs.
Wernicke says, “Of course, the tips and advice we’ve provided in our blog post are just some of the most popular ways business owners fund their startups, but every business has its own needs. If you want tailored advice about funding your startup, you should check out our Accelerator Program, or simply get in touch with us and we’ll help you!”
Learn more about Newchip Accelerator, their history in the field and their wide-ranging services at their official website. Those interested may reach out to Keagan Wernicke via email or phone to follow up on any further inquiries. Additionally, social media users may follow the Austin startup accelerator on their preferred platforms in order to stay abreast of their latest activities, announcements and offers. Find them on Facebook, LinkedIn, Twitter and more.
For more information about Newchip Accelerator, contact the company here:
707 E Live Oak St Unit 1, Austin, TX 78704