Financing in the startup phase
Collecting growth capital for your starting company
You need an initial investment to get your impact business started, this is called pre-seed funding.
There are several interesting financing options in the startup phase.
Financing options for startups
Bootstrapping: investing your own money
Most starting entrepreneurs use their own money to get their businesses started. This is also known as bootstrapping, which literally means “tightening the boot”. In this context, it means that people live frugally, income is not paid out and invested directly in the starting company.
Investors often find it important that the entrepreneur has also invested money in the company because this can say something about the involvement and ambition of the entrepreneur.
Family and friends
A gift or loan from people in your own network can be a quick, easy, and cheap solution. Ensure the Tax and Customs Administration sees the difference between a loan and a gift from a family member. Sometimes those who invest money get a share in your company in return. Record the agreements well.
Once again, investors often see it as a good sign if the family and friends of the entrepreneur have invested money in the company.
Participating in startup competitions can be lucrative. These programs focus on helping start-up entrepreneurs, for example with networking opportunities, a mentor network and prizes for the winning startups.
Some examples of this are:
The Hague Innovators challenge
Some impact startups are eligible for a charitable donation. Examples of organizations you can get a donation from are:
There are more and more local, national and international subsidies for impact startups.
Knowing more? View the page about grant opportunities.
Early-phase financing is a loan that bridges the period between idea and product development.
Promising startups can receive a loan from the Early-phase Financing scheme to determine whether their project can be started and whether their idea can succeed in the market. The loan and the interest charged on it must be repaid.
Uniiq is a €28.8 million fund focused on the proof-of-concept phase. Uniiq helps entrepreneurs in South Holland to bring their unique innovations to the market faster. Uniiq is a collaboration of knowledge institutions and incubators.
Incubators and accelerators
There are several incubators in The Hague. They help your business grow with training facilities, access to financiers, and a network of experts.
When you start a business in The Hague, you get access to the services of these incubators. Sometimes they also make an investment in your company.
Incubators often also offer substantive programs intended to help startups develop ideas. These programs are also called accelerators.
ImpactCity Accelerator helps entrepreneurs grow with support from Startupbootcamp and a mentor network.
World Startup Factory helps entrepreneurs to start their businesses with positive impact goals.
Yes!Delft has various accelerator programs including AI, Blockchain, and Social Tech in The Hague.
Crowdfunding is a way of raising money from a large group of people through a campaign. Did you know that the Statue of Liberty was once financed with it? There are various digital platforms that facilitate crowdfunding, including platforms specifically aimed at impact companies. Through a campaign, you can have a first product financed by the “crowd” or you can get a first investment or loan.
Business angels, also known as angel investors, are an important source of financing in the early phase. Business angels are often wealthy individuals who invest their own money into a new company.
Want to know more about business angels? Then view the page on this subject.