James Gupta at Lean Startup Yorkshire

It isn’t long before all new ventures need money. Initially the founders may have savings or if an established business is launching a new product or service they maybe able to support it for a while; but other sources of income must soon be found. Bootstrapping can work if the product already exists and customers are found quickly.  But, when a product needs resources to build it and time to find market traction financial support is needed until customers arrive in large enough numbers. Established businesses may raise a bank loan, but startups don’t yet have any assets to offer as collateral. Most startups turn to either angel investors or venture capital funds to exchanging shares in the company for cash because it’s the only thing they have to offer.
In recent times crowdfunding has also emerged as another option and while it isn’t a new idea the internet has made the process cheaper and more accessible. Platforms like Kickstarter, Indiegogo, CrowdCube or Seeders have led the way and together with others they offer a range of ways to raise money from the public in exchange for either equity or perks and pre-sales. James Gupta explains the process that his company Synap took to launch a crowdfunding campaign and lists some tips for others who may follow.