Understanding Early State Financing Critical to Entrepreneurs – IdahoTechConnect

When first starting a business, many entrepreneurs obtain money through the three F’s: Family, Friends, and Fools. But when seed money runs out, entrepreneurs need to consider other sources of funding to get their ideas to market.

Although Idaho has no shortage of ideas, our state has relatively limited options for startup capital. Entrepreneurs need funding to get their ideas through the middle of the innovation pipeline, infamously known as the "Valley of Death"–a term that describes the place where good ideas go to die.

To commercialize their ideas, entrepreneurs need to understand the complexities of early stage financing. Although this may seem like a dry topic to some entrepreneurs, not having a solid background knowledge of this process could lead to serious consequences.

Entrepreneurs have more sources for financing than they often realize, each source with benefits and drawbacks. Many entrepreneurs make the mistake of targeting sources inappropriate for their company’s stage of development, industry, and funding needs. At best, choosing the wrong source of funding could lead to frustration and loss of productivity from mismatched expectations. At worst, it could even lead a business owner to lose ownership of the company he or she founded.

Another common mistake is failing to develop a sales pitch targeted to a specific finance source. There are many different sources available, such as angel investors, venture capitalists, and government grants. Each of these sources has unique expectations and investment criteria. To be a competitive candidate for funding, entrepreneurs need to understand how these factors influence the way they strategically pitch their ideas to specific types of investors.

The IdahoTechConnect office recognizes that educating individuals on early stage financing builds stronger businesses, which in turn builds stronger communities. Join us at TechLaunch 9.0 this year on May 15 – 16 to learn how to get investors to show you the money. Students and aspiring entrepreneurs are encouraged to attend this event to learn the complexities of product commercialization, start-up financing, and networking with industry leaders.

For more information, please visit http://www.idahotechconnect.com.

About Idaho TechConnect

Idaho TechConnect is a private non-profit organization focused solely on innovation – its development, transfer and commercialization – all of which impact the state’s economy. As a statewide entity, Idaho TechConnect bridges the gap between ideas, research and patents and the enabling people, money and facilities. Regional offices assist Idaho entrepreneurs and businesses in turning ideas into products, establishing and growing R&D programs, seeking funding and competing in the global marketplace. More information is available at http://www.idahotechconnect.com.