Social networking isn’t just about finding jobs or promoting a business—it can also be a great way to get funding for your business.
Social media has been a staple in the business world for nearly a decade now, but the range of uses is always expanding. While some businesses confine themselves to Facebook and Twitter for content marketing and special promotions, startup tech companies can really take advantage of the social networking opportunities available when first starting out.
The two primary sources of funding available for startup tech companies marketing themselves on the web are angel investors and crowdsourcing platforms. Each possibility has distinct advantages and disadvantages, but it’s a lot easier to attain either one if you know what you’re doing in the realm of social media.
With angel investors, you can receive a large sum of funding from one or a few sources. In many cases, your angel investor will serve as a mentor, giving you guidance and advice as you plunge into entrepreneurship. It can be highly beneficial, especially for first time entrepreneurs, but it can also limit your original business vision if your angel investor demands or requests changes to your original model.
The best way to find angel investors through social networking is LinkedIn or Twitter. Most angel investors who are familiar with these platforms will have some sort of noticeable presence, and social groups on both platforms will help connect investors to entrepreneurs and vice versa. Get involved and start actively engaging with these people without directly asking for help. Eventually you’ll build solid connections you can take to the next level.
On the other hand, crowdfunding is another viable way to gather investment funding and it comes without the direction of a single or group of single investors. Instead, you’ll be able to leverage crowdsourcing technology to host your requests for funding and leverage your social following to attract new people to it. The downside is it’s less predictable and less helpful if you hit a major wall in your business.
Crowdfunding is best done through a platform like Kickstarter. Be sure to offer something of real value to all your contributors, no matter how minor. Then build your campaign by syndicating content and information through social channels like Facebook and Twitter.
No matter how you choose to seek funding, social media can play an extensive role in your search.
