Even though some people may not like to admit it, money is almost always essential in business. Startup funding helps to get a product or idea off the ground, and stay there.
In most cases, it’s not enough anymore to be passionate about your project and dedicate your time to it. Nowadays, you’ll need to research the market, develop your product and test it, advertise it to your target audience, and have a full marketing budget if you want your startup to be successful. This all costs money and that’s why funding for startups is so important for the world of business.
As the voice and helping hand for startups in the UK, TechRound has partnered with a number of accelerators, angel investors and VCs to help you and your business get the right funding for growing, scaling and expanding your business.
Simply enter your details below and one of our partners will come back to you immediately to discuss your funding options and get you on the way to raising the funding you need.
Apply for Funding For Your Startup
What is Startup Funding Used For?
Startup funding is used to gain access into the business world, and ensure the product they are putting out is the best possible version it can be. Here are some of the many things that startup funding is used for:
Allowing Entry to Market
A huge barrier for some people wanting to start their own business is a lack of money. There’s so many aspects to starting up a business that many people don’t think about until they try it for themselves. To name just a few:
- Leasing a premises for your startup to grow from
- Buying or hiring of equipment and furnishings for your premises
- Obtaining the correct business licenses
- Hiring staff to work as part of your team
- Development of product prototypes
- Ongoing market research
If an individual hasn’t considered all of these aspects and more, it can be very easy to start dipping into any savings they may have, as well as racking up debt. By applying for funding for your startup, you’re gaining peace of mind as well as some extra money.
Developing a Product or Business Idea
Startup funding can be used to develop a business idea or a product. This begins with a series of idea sessions to narrow your startup idea. Here, you’ll need accurate public opinion rather than funds. Once you’ve validated or discarded your ideas through market research, that’s where you’ll start to need startup funding.
You’ll begin to develop your validated startup idea and start to test it against the current market. The characteristics of your startup will determine how much funding is necessary for this stage. If your startup puts out a physical product, you’ll have to spend money on developing a prototype that can be used to test out the product.
Marketing Your Business
Once you have your business plan, you need to make your startup known. A good marketing campaign can be the difference between a failed startup and the next big thing. Marketing is easily a full-time job so you’ll likely have to employ your own head of marketing, or go through a marketing agency. Either way, it’s not going to be cheap.
Growing Your Startup
Once your startup is off the ground, you need to keep it there. This requires constant improvement from your business. You’ll need to keep up with the trends and keep your business in the forefront of your consumers’ minds. Having the person-power to do this costs money, and so does advertising your business.
Why do Startups Need Funding?
Funding is needed for startups as it creates a buffer between business expenses and personal expenses. Without startup funding, a founder could find themselves dipping into their personal savings in order to keep the business afloat.
Startup funding gives entrepreneurs the best chance at success. This funding opens the door to the world of business startups and sets them off on the right foot. Startup funding enables people with a sound business plan to succeed, no matter their circumstances.
Who Uses Startup Funding?
Startups in all stages of development use startup funding. Where each company is in their business plan, and their individual circumstances, determines how this money is then put to use. For some founders, investing in solid market research is the best course of action, whereas for others, the money may be better spent in creating several prototypes.