VCs: Rejected Your Startups For Funding? Then Try Some Alternate VC Funding Options

By ajay at November 7, 2011 | 12:18 am | Print

VCs: Rejected Your Startups For Funding? Then Try Some Alternate VC Funding Options

Started a new startup company and looking for some VC funding? Got disappointed after going to some VCs.Why?

Have they rejected your startup for funding? Yes? Then why dont you try out some other alternate VC funding options.

For instance, peer to peer lending options for funding your startup.Peer to peer lending is good alternate of VC funding.

You can also try some other funding options which is given below.

Here are few alternate of VCs funding which you can try out to get funding for your startup.

1.
MicroVentures

MicroVentures is build on the concept of peer to peer lending. Microventure is creating a market place where early stage company, small business and entrepreneurs can get funded easily without any big hurdles.

It is based on one to one loan concept and reducing the role of mediations like any finance institutions or banks before taking loan or getting funded for your startup. So, its quick and easy. It will provide micro investment to people which can be repaid in easy installments.

In other words,it gives investors the ability to invest in great businesses that need funding and at the same time, gives businesses the opportunity showcase their great ideas to a group of people they never would have had access to.

2
Lending club

Lending club is an online financial community bringing together investors and creditworthy borrowers so that both can benefit financially.
The main purpose of this site is to removing the bank from the lending process, they make it possible for investors to earn a higher return and for borrowers to get a lower rate on personal loans.

Lending Club prefer working with startups in their formative stages, and look especially for entrepreneurs with a clear sense of purpose and vision, and a clarity in communicating them.

They also look for companies that have the greatest chance of making a difference: through market size, competitive advantage, potential financial return, and, not least, great teams: people who are intelligent, hard working, intellectually honest, open to ideas, self-aware, technically competent, and supremely confident.

3
Revenue Based Financing

Revenue Based Financing is a new way for getting funds for your business, its for promising early-stage companies to finance the growth of their business.

Instead of requiring a business to pay a fixed amount and over a fixed amount of time , RBF loan entitles the lender to a fixed percentage of gross revenues until a multiple of invested capital (typically 3 – 5x) is returned.

Revenue Based Finance lenders trade steeper default, timing and rate of return risk for richer potential returns than those offered by traditional business lending (i.e. banks).

4
Wiown

Wiown.com is a platform that will see online start up ideas turned into offline realities.Wiown allows you and others to join in and submit ideas. Any ideas that can make money is allowed to be submitted on Wiown.If its feasible and the crowd votes for it, Wiown funds it. Even if you have no ideas- you still benefit by just being a member!!

Wiown will take a percentage stake in your venture. Once your startup ideas profits, Wiown’s part of the money goes back into the community each time till it is sold back to you.

You can collaborate with others online to make sure your idea will work first, then submit it.
The better the idea- the more people will join in and offer their valuable opinions, advise and more.

After all, they benefit if your project succeeds too! Investors might even want to Invest in your Idea along the way- No problem, close the deal with them and go Private!!

5
Grow VC

Grow VC can help mobile and web 2.0 startup stars secure initial funding for their businesses ranging from $10,000 to $1m USD.

Grow VC is fixing the inefficiencies of private seed funding for web and mobile companies with a global social network and crowdfunding.

The service includes the tools needed for building a startup from the ground up, to getting funding at the seed level.

It introduces startups to investors, experts and other entrepreneurs, helping them discover common interests and providing new transparent ways of achieving investment.

The community-fund feature includes a members leaderboard based on the merit of the members’ investment decisions. The most successful decision makers will be financially rewarded when the community fund begins earning return on investment (ROI).

All decisions are completely transparent so Grow VC members can always view how successful past and ongoing investments are.

6
United Prosperity

United Prosperity is the world’s first person to person loan guaranteeing website for any kind of entrepreneurs.

It is a non-profit organization that helps you borrow money through loan guarantees. It is the world’s first person to person loan guaranteeing website.

You can become a compassionate social guarantor with United Prosperity by providing an interest-free cash collateral or guarantee for an entrepreneur on its website.

No minimum amount is required, and you are able to choose which entrepreneurs you would like to support. For every $1 you put toward a guarantee, you will allow nearly $2 or more in microloan to the entrepreneur from local banks either directly or through its partners.

Better yet, you will be able to track your chosen entrepreneur’s progress, and when they repay their loan, you will be repaid in full! At that point you will have the opportunity to support another entrepreneur if you wish.

7
Prosper

Prosper.com is a peer-to-peer lending site where people put “auctions” for loans with the highest interest rate that they are interested in paying. Then users lend the borrower money in increments as small as $50.

Prosper allows people to invest in each other in a way that is financially and socially rewarding.

On Prosper, borrowers list loan requests between $2,000 and $25,000 and individual lenders invest as little as $25 in each loan listing they select.

In addition to credit scores, ratings, and histories, investors can consider borrowers’ personal loan descriptions, endorsements from friends, and community affiliations.
Prosper handles the funding and servicing of the loan on behalf of the matched borrowers and investors.

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