The internet has changed the world of finance in a huge way. By no means least amongst those changes are the waves made by cryptocurrency and the slow (but steady) adoption of blockchain technology in financial institutions across the world.
The world of business funding is no less susceptible to that change. The internet is helping us avoid the clunky, conservative world of traditional bank loans, and here are a few of the ways those changes are benefiting new entrepreneurs and startups.
A bigger range of investors
We can’t talk about online funding without talking about perhaps the biggest change to the landscape of all. Crowdfunding is here to stay, despite the fact that many thought it would be a short-term bubble ready to pop. However, sites like Kickstarter are still as broadly used as ever, with more competing spaces popping up all the time.
Not only have there been several hugely successful cases of entrepreneurs raising millions through crowdfunding platforms, there are smaller scale successes in different formats, as well. For instance, platforms like Patreon, specifically designed for creative and media ventures, allow business owners to gain sustained long-term funding and support from an audience that is able to pay whatever they want to on a monthly basis.
Quicker access to more loans
The loan is the simplest and easiest funding method to understand. However, before the internet, the most accessible sources of loans were the banks. As unwieldy and large as these institutions are, they rarely supported smaller loans and often delayed the launch of a business by months if not longer.
Now, online lending sites like Iruka Capital offer business owners a much better opportunity to sidestep traditional funding sources. Not only are these sites able to offer business loans for startup funds, but other sources of ongoing finances, like short-term loans, equipment financing, invoice financing and more. All in all, the business owner can avoid having to go to banks altogether if they want to.
Connecting investors and startups
The idea of attracting investors has long been an exclusionary one to the small startup looking to find their feet. As essential as networking is, plenty of gatekeeping ensured innovative ideas didn’t get much traction at all. However, the net is promoting a much more open idea of how we reach investors.
Through online investor networks like Gust, you don’t have to do anywhere near the amount of the legwork you did to reach potential funding sources. What’s more, so long as you have the business plan and your application at the ready, you can reach many more investors at once, even attracting a little competitive bidding for a piece of your idea.
If you’re starting a business, then the traditional route is now far from the best one available. With the changes the internet is bringing about, as listed in the examples above, funding is more accessible and varied than ever before. You have much more room to get online and check out way more options.