Entrepreneurs head to RaiseCapital

June 3, 2008

1997

I receive a fair amount of solicitations for free plugs but when Maureen Mecke from 5W Public Relations sent one for RaiseCapital. I felt it was right for this audience. RaiseCapital is like the funding section on StartupAddict.com, it gives entrepreneurs the ability to find the ever “elusive” startup funding.

According to the 5W Public Relations press release:

Small and medium-sized businesses play a vital role in the American economy accounting for nearly 50% of the nation’s GDP. However, only 13% of these small companies have access to multiple sources of funding leaving the small business segment prone to high failure rates.

Richard Singer, co-founder and CEO of RaiseCapital.com, has the solution for entrepreneurs who are discouraged by an inability to locate funding. As a free online community, RaiseCapital.com provides a forum for entrepreneurs with start-up or existing businesses to display their ideas and capital needs to an array of investors.

Mr. Singer has the following tips to help entrepreneurs connect with funding:

1. Utilize the Internet to post your ideas for venture capitalists to see. Venture capital funding is difficult to secure if you only speak to a small group of people about your idea. By posting on the Web, you are casting your net far and reaching the largest audience possible, thereby increasing your odds of finding capital. Most importantly, it’s free.

2. Study your competition and seek out alternative approaches that will make your business unique. Venture capitalists will likely take notice of your creative idea and support a business where they can expect a substantial return on their investment.

3. Demonstrate the market demand for your product or service. Whether an existing business or a startup, create a beta version of what you plan to produce on a larger scale with financial backing. If investors can see a beta Web site or the product you plan to later mass produce, they will be more comfortable supporting a promising enterprise rather than an abstract idea.

4. Create a detailed business plan outlining what you plan to do once you receive the funding. Account for every expenditure and discuss alternative approaches you will take if the business begins to fail.

5. When posting your idea on the Internet and developing a business plan, explain your previous work experience and how that will translate into your ability to effectively manage a successful business. The most common reason that businesses fail is poor management.

So If your looking for funding and you can’t wait for the peer2peer module on StartupAddict.com funding tab then Raisecapital.com is great place to be.