Need seed funding?
Starting up a new company has a number of challenges of which getting together enough capital can be one of the most critical things to get right. Statistics show that under capitalization is one of the top reasons why startup businesses often fail. One of the challenges involved in getting together enough capital is that many investors are leery of start up businesses especially during a rocky economy. Venture capital firms prefer established businesses. On the other hand, there are investors who enjoy mentorship and support for startup businesses. The following 10 websites can prove helpful to those looking for seed funding for a startup business. They are listed in order of their Alexa traffic count rate.
1. TechStars/Springboard: http://www.techstars.com/
Global Alexa Rating: 40,780
Springboard was a popular seed funding source in and of itself, but now that it is part of TechStars they are able to do even more. TechStars provides seed funding from over 75 top venture capital firms and Angel investors who are vested in the success of the startups. Startups also benefit from intense membership from hundreds of the best entrepreneurs in the world. TechStars has locations in Austin, Boston, Boulder, Chicago, London, New York City and Seattle. They fund technology oriented companies, typically web-based or other software companies. Those accepted get an initial seed investment of $18,000 and an optional $100,000 convertible debt note. They also receive access to a number of perks such as free hosting. From there they are presented with a number of opportunities to pitch to Angel investors and venture capitalists to raise additional capital.
2. Seedcamp: http://www.seedcamp.com/
Global Alexa Rating: 72,899
Seedcamp touts itself as the most connected international seed investor in the world and as Europe’s leading micro-seed investment and mentoring program. They began in 2007 and now include 100+ startups and invest in about 20 more startups globally each year. They provide startups with three funding options and tons of services and tools that save considerably on startup expenses. Seedcamp host events globally throughout the year. The three funding options include: 1) receiving no funding, but trading 3% of the ordinary shares in the company for full participation in the Seedcamp program; 2) receiving standard investment of £50,000 in return for an 8-10% stake; or 3) receiving £25,000 for a 5 % stake. Some of the perks available our office space at Google Campus London, access to a network of over 2000 mentors, a four-week mentoring tour of the US startup and investor community, and intensive growth phase at their Seedcamp Weeks and their Founders’ Pack worth over £200,000 of free or reduced rate services.
3. Accel Partners: http://www.accel.com/
Global Alexa Rating: 75,065
Accel Partners began in 1983 and has so far helped entrepreneurs build over 300 successful technology companies across the globe. They not only list many of these companies on their website, but also have a link to explore career opportunities within those companies. You are bound to see plenty of companies that you recognize including Facebook, Groupon and Spotify. They have companies in London, India, China and Silicon Valley in four sectors: Infrastructure; Internet & Consumer Services; Mobile and Software & Cloud-Enabled Services. The website also includes a bio on the people in each of the four offices. A blog section includes resources, videos, featured news and information about upcoming events. They are also archives going back to 2008.
4. Index Ventures: http://www.indexventures.com/
Global Alexa Rating: 85,914
Index Ventures invests in companies in the fields of information technology in the life sciences with particular attention to companies that sell real problems with a novel approach. It is their belief that one of the biggest mistakes a startup can make is selecting the wrong investor for the wrong reasons which could jeopardize the prospects for the business. To this and they are put together a team that has a deep technology and scientific understanding and experience and have cultivated long-standing relationships with the world’s leading IT and healthcare companies to create a source of competitive advantage for their portfolio companies. They began in 1996 by individuals who saw the opportunity to adapt the California venture capital model to Europe to create great, long-lasting technology companies in Europe.
5. Greylock Partners: http://www.greylock.com/
Global Alexa Rating: 130,966
Greylock Partners was founded in 1965 and has over $2 billion under management. They are headquartered in Silicon Valley with offices in Cambridge, MA, as well as a partner firm, Graylock Israel with offices in Tel Aviv and London. With their early-stage investments they look to partner with standout entrepreneurs building innovative businesses including startups that have little more than a few presentation slides. They have supported a number of companies in the early stages. Some Greylock-backed companies include Constant Contact, LinkedIn, Red Hat, Dropbox and Redfin. Discovery seed investments can be as small as $50k and as large as $500k. They continue beyond the seed stage into early-stage and growth stage.
6. Apax Partners: http://www.apax.com/
Global Alexa Rating: 373,685
Apax Partners invests in four sectors and supports those investments through three integral practice areas. With a 30 year history, they have successfully invested across all investment stages and through several complete economic cycles. They have a global network of nine offices on four continents and employ over 230 people. They have a full accounting of the total funding raised on their website. They work with four main sectors: Consumer, Health care, Services and Tech & Telco. The three integral practice areas are digital, operational excellence and capital markets. The website is thorough and gives complete information about the company, their approach, their people, their investors, their reports and information about their sustainability committee and foundation.
7. Astia: http://www.astia.org/
Global Alexa Rating: 467,203
Astia is a community of experts committed to building women leaders exploring the funding and growth of high-potential, high-growth, women-led startups. It was founded in 1999 and Silicon Valley to address the issue of women’s access to capital, specifically for building technology companies. It is based on two fundamental principles – that gender should not be part of the equation of calculating business risk and that there is objective of giving back. They serve for markets: Silicon Valley, New York, Europe and India. They hold numerous events including screenings and luncheons. Users can read all past archived newsletters dating back to 2008 and join their mailing list to receive them monthly. In 2013 they launched Astia Angels, a global network of female and male Angel investors that invest specifically in women-led, high-growth ventures.
8. Amadeus Capital: http://www.amadeuscapital.com/
Global Alexa Rating: 638,179
Since its inception 15 years ago, Amadeus Capital has funded and supported more than 85 young companies. Their current portfolio includes the following sectors: Communications & Networking, Fabless Semiconductors, Hardware & Advanced Materials, Enterprise & Infrastructure Software, Consumer & Business Services, Medical Technology & Healthcare IT and Cleantech & Resource Efficiency. The website includes information about their investment team and support team that has a track record of successful investment and high technology companies. Each team member has founded, Ron or worked at a startup company prior to becoming a venture capitalist giving them the ability to understand the challenges and rewards of being an entrepreneur. The key ingredients that they look for are a great team, a competitive edge, and underserved customer need, a growing market and global potential. Proposals can be submitted directly on the website.
9. Perkins Coie: http://www.startuppercolator.com/seedfinancing/
Global Alexa Rating: 783,692
From a corporation to exit, Perkins Cole is committed to helping their clients build a great company. They have a reputable practice that spans the US and China representing clients in a variety of fast-moving industry sectors including life sciences, Internet, software, digital media, retail, telecommunications and cleantech. They have handled thousands of venture financing is over the years. Their services include forming the company, startup structure, seed funding and business planning. The Perkins Coie’s Emerging Companies & Venture Capital Group represents venture capital funding and high-growth, venture-backed companies in a number of regions and industries. Their Founder Tip of the Week section has valuable information for entrepreneurs.
10. Beringea: http://www.beringea.com/
Global Alexa Rating: 1,535,188
Beringea was founded in the 1980s by a group deeply interested in supporting businesses in growth industries. They are perfect for owners and entrepreneurs that are seeking capital, consultation and business support in a range of sectors including healthcare, media, clean technology and IT. They have offices in Detroit and London. Their website includes their team members, including contact information, their portfolio companies and a section devoted to news and community that includes photos, media coverage, press releases, publications and literature, events and videos/podcasts.
When it comes to having a startup business, the old adage ”if it was easy, everyone would do it” rings quite true and yet the challenge is part of the allure for many entrepreneurs. Few are in a position to provide all the necessary fundingl for getting started, and will find these 10 websites helpful in obtaining not just the seed money to get started but also benefits that simply can’t be monetized. It is also not a bad idea to approach more than one company. Keep in mind just how many Fortune 500 companies began modestly in the family’s garage – it can happen for you too!
