Seed Funding a Tech Start-Up

by Hr Tech Partnership We work with companies at early stages to ensure

Starting your own enterprise demands being prepared for a long haul, and it is not an easy task to succeed at. Predictably, the initial support comes from friends/family and funds borrowed are normally used for developing the core product. However, once a start-up gets past this stage and feels confident about expanding its scope it needs to start considering how it is going to finance the next phase.

Typically, most startups look at a relatively short list of avenues to raise capital.

Routes to raising capital:

– Individual Angel Investors: Usually in it for convertible debt or ownership equity in the company, Angel Investor are individuals with affluence and thus, capital, to bring to a start-up.

– Angel Networks: A more elaborate version of angel investors, as the name suggests, an angel network is a group of angel investors who have joined forces to invest as a unit. At times, they may also offer support if an opportunity lies within their area of expertise.

– Seed Funds: Largely self-explanatory, these are investments made by investors, usually in exchange for an equity stake in the business after a mutually agreed upon period of time. Seed capital is usually spent on market research or further product development. Since the risk is considerably higher while gathering seed capital(as opposed to venturing capital), the former is often in tens of thousands, while the level of stake required to get required funds is the same as venture capital in hundreds of thousands.

– Early-stage Accelerators: Essentially programs that encompass all the facets of initiating a startup leading up to the point of pitching to investors, early-stage accelerators offer more than simple capital; they also offer mentorship and education in the field of business being undertaken. An added advantage of accelerators is a peer review of a given pitch (accelerators accept startups in batches, grouped together).

How the HR Tech Partnership contributes to Start-ups in the People Tech Area:

The HR Tech Partnership is unique in a number of ways. Firstly, its focus is purely on the Workplace and Employee space. It looks at innovative digital solutions using AI and other cutting edge technologies around Workforce Planning, Resourcing, Talent, Learning & Development, Employee Engagement, Reward & Benefits, and Wellness, etc. Secondly, all members are domain experts in the People Tech area and along with funds bring their expertise and a successful corporate background to the table. Thirdly, The HR Tech Partnership combines the benefits of both seed funding and Crowdfunding, enabling regular professionals to benefit from specific deals. This brings a huge advantage to any start-up — credibility from a group of respected professionals, access to their network, visibility to a potential customer base and the ability to scale up to more rapidly.

Originally published at

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About Hr Tech Partnership Freshman   We work with companies at early stages to ensure

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Created on Oct 24th 2019 01:54. Viewed 373 times.


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