Being a student entrepreneur is great. After all, many of today’s most successful businesspeople started out as student startups. With minimal risk and abundant resources, student entrepreneurship is growing at colleges and universities globally. According to the Kauffman Center for Entrepreneurial Leadership’s Insights Report, more than 1,500 colleges provide some form of entrepreneurial resource, a 120% increase over the past five years.
Most universities now offer incubators, hackathons, and networking events, but there are a variety of resources that aren’t limited to specific student groups. But one thing applies to all student startups: You need money to get on track. But how does a student, perhaps financially limited, make money? In this post, we take a look at seven ways students raise money for student startups.
1. Networking event
According to LinkedIn’s Corporate Communications team, nearly 80% of its professionals believe networking is important to their professional success. The same survey found that 70% of employees were hired by a company related to a current employee.
Networking is essential for success in any career field, but especially in the entrepreneurial and business worlds. Not only is the event aimed at connecting students with great ideas with other students with similar passions, but it is also aimed at interacting with investors and community leaders.
The College Entrepreneurship Organization (CEO) has more than 400 chapters in North American colleges and universities, supporting more than 16,500 aspiring student startups each year. The CEO also hosts regional events and annual global conferences, connecting members with industry leaders, successful entrepreneurs, and other students. The annual conference is aimed at student startups but is open to all individuals.
In addition to the resources listed in this article, research startup and entrepreneur networking events in your community. These don’t necessarily address student barriers, but you can meet with experienced innovators for advice.
Read: What are the Top Funding Options for Startup Ventures?
2. Business plan contest
Business plan contests not only provide a mechanism for funding startups, they can also generate publicity and a worthwhile launch. Business model contests are so popular that sites like iStart have sprung up to offer contests that best fit a student’s situation. As a bonus, iStart members can post their business plans in a searchable database for anyone to consult to foster connections with venture capitalists. but
Some competitions, such as the Global Student Entrepreneur Awards, require performance at the local level before being eligible to participate. Others, such as the International Business Model Competition, provide opportunities to compete on a global scale. This is such a great finance outlet for student startups.
3. Venture fund
Due to the high level of student startups, student-focused mutual funds are popping up all over the world.
Contrary Capital believes that the next generation of successful companies will come from universities. The LinkedIn page says: “We will fix it.”
Another resource, the Dorm Room Fund, is a national student-run venture capital fund backed by First Round. The organization has invested in 200 startups that have raised over $400 million in the last five years. “No matter where you are in the country or what school you go to, you’ll have access to a strong network of investors, world-class mentors, and a $20,000 check to help your startup grow,” the company said in a blog post. [Are you interested in small business loans?] Check out our recommended tips.
4. Crowdfunding
A very popular way to secure funding for a startup is to create a campaign on a crowdfunding website. This means that your business is funded by people who believe in your product or business idea and want to help fund it. You can offer a small gift. For example, he can provide a keychain for donations of $10 and a t-shirt for donations of $50 or more. Either way, the great thing about these donations is that they don’t have to be repaid.
The potential for raising capital here is huge, and some of the biggest success stories in the UK startup scene have started on crowdfunding sites. However, due to the high risk for potential investors, it may be preferable to raise less seed capital and provide a little more equity.
Having a solid profile on these websites for your business is very important.After all, that’s the only way potential
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Start Now5. Reach out to angel investors
Angel investors are basically people with a lot of money (usually very successful businessmen themselves) who want to invest in the next big idea. Think Dragon’s Den. However, there were no provocative or dangerous remarks.
The best part is that angel investors are more than just a lump of cash to back your business. They guide you through your adventures, offer advice when you need it, and warn you about common mistakes that companies tend to make.
How to get the attention of angel investors is another matter altogether. A quick Google search should reveal several ways to reach out to investors, but the website of your country’s Business Angels Association is a good place to start.
You should also pay attention to pitch events and conferences that investors are likely to attend and inquire about pitching your product. Remember that small events are just as effective as large ones, and you don’t have to pay to market them. Also, do not bother about being a student startup; it will surprise you to know that you are not the only one.
6. Try the government startup loan program
Perhaps the quickest and easiest way to find startup funding is through government-sponsored startup loan programs.
The scheme is specifically aimed at young entrepreneurs and offers loans ranging from $500 to $25,000 to get your business up and running. If you are serious about financing your student startups, you should consider this.
7. Raise funds for yourself
Easier said than done, right? But if you’re serious about getting your business off the ground, set aside some money to secure your funding if possible. We understand, student startups, don’t have that easy. This is why, we advice to take up a side hustle or a job on or off campus.
Also, we recommend setting up a student savings account with the sole financial goal of supporting your business idea. Deposit extra cash into this account, which will accrue interest and grow.
Funny enough, there are some great online banking startups that can help you save more. For more information, see some automatic savings apps.
8. Request a bank loan
Student startups can find it pretty hard to get a bank loan as they’re mostly young, and the options above seem more realistic if you’re still in college.
Accepting a loan depends on having good credit and a very solid business plan. This is basically so the bank can make sure you can pay them back when the time comes.
However, if you work on that business plan and perfect your credit score, a commercial bank loan may be within reach. Nothing is really impossible
Conclusion
The truth is, the world loves it, when young people innovate. When we work our backs off to do something good, something that will help the community or bring in incredible income. Which ever it is, people rally for things like that. So if you have some business idea that gets you in your sleep and every wakening moment, go at it. You might just get incredible support for it.
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