E Commerce : A Great Idea Can Only Get You So Far With Limited Funds

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Starting any business is inherently difficult. A great idea can only get you so far with limited funds. E-commerce sites face this same struggle. While there is more to beginning startups than simply fundraising, it will eventually become essential. Luckily, there are many avenues startups can take in order to raise the funds needed to establish a business, help grow a business, and sometimes even find new customers and grow a new business’ niche audience. All types of investing has risks, pros and cons. Depending on what startup you are developing, it is important to know your different funding opportunities. ANGEL INVESTING An angel investor is an individual who provides seed money for starting a business, or ongoing support to help…show more content…
Angel investors do expect a certain rate of return, but also offer the greatest range in amount of investment. Again, these can be family members or an investor. Depending on who is investing, amounts of money or expertise will vary. Keep in mind, whenever you give up part ownership of your business, you may be fighting over decisions with your investors at later times. VENTURE CAPITALIST Venture capitals generally invest in startups expecting to see a profit. They are capitalists and entrepreneurs who tend to be business savvy to some degree. They have deep pockets, so they can usually invest more than the typical angel investor. Venture capitalists may have a stronger desire to be part of the consulting and management efforts, which depending on your investor could be a great asset. Be wary, as this can easily become a hurdle if your investor and you have different visions for your startup. An investment from a venture capitalist would be perfect for larger startups or e-commerce sites since investors have more equity to invest. They can also offer their expertise in guiding your business to a successful and profitable business venture. In fact, may even decide to bring their other deep-pocketed friends around if they really believe in your company. An investment from an investment capitalist would be perfect for larger startups or e-commerce sites since investors have more equity to
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