Contact Form | info@latml.com

CONTACT US
310-751-0181

CONTACT US
310-751-0181

Contact Form | info@latml.com

Startup Funding vs. Startup Capital

Share on facebook
Share on google
Share on twitter
Share on linkedin
Startup Capital and Funding Startegies Blog - L.A. Tech and Media Law Firm Los Angeles Technology Startup and Private Equity Attorney since 2007 Malibu Beverly Hills, New Port Beach and Southern California - techandmedialaw.com

When entrepreneurs, technology startups, and small businesses want to start a new venture and launch a new product, the issue of startup funding and startup capital requirements take center stage, and the main focus of many meetings and deliberations between the startup cofounders.

Virtually every business needs money, or has capital requirements. Technology Startups are no exception and in fact having even more pressing startup capital requirements than traditional small businesses because most technology startups, such as, for example, mobile software companies, software -as -a- service (SAAS) businesses, social media companies, other new media tech ventures usually expect not to generate revenue for a substantial period of time during the startup and even prelaunch phase. So those companies have even greater capital requirements.

How to Get Startup Capital

Naturally, startup entrepreneurs and CEOs of technology software and hardware organizations start to look startup funding strategies across the board, including but not limited to venture capital (VC) as a source of income or cash to support the runway.

Rather than go down a full list of the best venture capital firms in Los Angeles, San Francisco, Austin, Miami, or New York, and their respective angel investor counterparts, where ideally this list would be dissected across a plethora of sectors and industries that is all fueled by the underbelly of mobile and software ecosystem, let’s talk big picture.

The big picture is, technology startup need cash, and lots of it.

What entrepreneurs, tech startups and small businesses should consider in the big picture of startup funding and startup capital requirements is that these two different things, two different startup capital strategies, and one encompasses the other.

Startup Capital Strategies For Technology Entrepreneurs

Startup capital translates into cash that is usually allocated toward a runway or budget for research and development (R&D) and other startup operational tasks reelated to teh venture. Startup capital is the result of startup of funding, and if tech enrprneeurz closes a deal with venture capital firm and after various rounds of startup funding meetings and negotiatoins, the entrprneure now has startup capital.

Startup Capital and Funding Startegies Blog - L.A. Tech and Media Law Firm Los Angeles Technology Startup and Private Equity Attorney since 2007 Malibu Beverly Hills, New Port Beach and Southern California - techandmedialaw.com

But startup funding, usually through venture capital firms and angel investors is not the only way to secure startup capital. Tech startups and entrepreneurs can also secure capital from friends, family, loans, debt, and the best source of startup capital, early customers, paying an advance for a product or service that is not even developed yet. Essentially crowdfunding from a few or thousands of customers through platforms like Kickstarter and Indiegogo.

Of course, venture capital firms and angel investors are an excellent source of startup capital, but they are not the only source. And when technology startups and entrepreneurs in Los Angeles, Beverly Hills, San Francisco, Chicago, Denver Colorado, or anywhere else in the United States are raising money, going through the startup funding process, and otherwise looking to secure startup capital, broadening the sources of startup capital, across the spectrum from traditional venture capital and angel investors to crowdfunding. consultation with an experienced Technology Startup Attorney in Los Angeles can help tech startups and entrepreneurs structure startup capital requirements and sources, and plan ahead while raising money, seeking startup funding, and otherwise funding and capitalize operational requirements.

Money isn’t cheap.

David N. Sharifi, Esq.
David N. Sharifi, Esq.

David N. Sharifi, Esq. is a Los Angeles based intellectual property attorney and technology startup consultant with focuses in entertainment law, emerging technologies, trademark protection, and “the internet of things”. David was recognized as one of the Top 30 Most Influential Attorneys in Digital Media and E-Commerce Law by the Los Angeles Business Journal.
Office: Ph: 310-751-0181; david@latml.com.

Disclaimer: The content above is a discussion of legal issues and general information; it does not constitute legal advice and should not be used as such without seeking professional legal counsel. Reading the content above does not create an attorney-client relationship. All trademarks are the property of L.A. Tech & Media Law Firm or their respective owners. Copyright 2019. All rights reserved.

Recent Posts

TOPICS

L.A. TECH & MEDIA LAW FIRM
11620 Wilshire Boulevard, 9th Floor
Los Angeles, CA 90025

Office: 310-751-0181
Fax: 310-882-6518
Email: info@latml.com

Follow Us

Sign up for our Newsletter

Schedule Confidential Consultation Call 310-751-0181 or Use this Form

Schedule Confidential Consultation

Call 310-751-0181 or Use this Form