The technology sector continues to grow at a more rapid pace than ever before, blossoming with new ideas and game-changing products that simplify our lives. New designs or services can help streamline our pathways to success while making improvements in our dynamic world. Outstanding start-ups begin with great ideas to develop products that positively affect how we live, such as solar energy items to help save the earth’s resources. But the majority of all start-ups face the same struggles in getting good ideas off the ground and to market. That is, money.
Early Stage Funding for New Technology
Many a good idea has begun with a group of colleagues or school mates meeting for coffee or a beer at the end of the day. Putting their heads together, they come up with ingenious plans and then get to work trying to turn it into a viable product. Whether it’s an idea to reduce energy consumption, green products that help promote environment awareness or hi-tech components, there comes a stage in development where the idea cannot continue without an influx of cash.
New Equity Investment
Crowdsourcing is a relatively new way of raising funds by trading specialty gifts, rewards or bonuses for cash deposits. One company, betaworks, is taking that idea one step further by offering equity in the company to crowd-sourced backers through its platform, Alphaworks. The plan can work for products that are community based, such as local shops, as well as technology. When company goals are met, a certain percentage of those funds are put aside to reward its investors with equity. In this way, backers can support ideas they are passionate about while being rewarded with equity in a growing business. Qualified investors can put varying amounts of money into startups that mirror their own personal goals, and stay involved with the company as it grows.
Brilliant ideas are being developed every day, and this is one way of not only gaining financial backing, but taking advantage of the power of the masses to create product.