Finance your company
When the magical 3 Fs (family, fools & friends) won’t do you will need to find a robust funding source to finance your startup. We have explored some of the sources of financing that every new business should look into when starting up.
#1 Bank loans
There are dozens of different banks in Prague, most of the providing small business loans. Conditions differ from bank to bank but you will definitely need a solid business plan with midterm prospects to be eligible for bank funding.
The complete list of banks is here: //apl.cnb.cz/apljerrsdad/JERRS.WEB07.INTRO_PAGE?p_lang=en
Finding an investor might be the best options for many startups, still it has its own drawbacks. The cost of this low-risk, debt-free funding option is giving away a significant stake in the long-term ownership and control of your business. Before you consider working with investors as a source of financing, think carefully about what concessions you’re willing to make and how involved you want that investor to be in steering the business direction and philosophy. Many investment companies or business angels are located in Prague and are ready to help you roll.
Getting financial resources from people who are interested in your idea or technology is also one of the ways. Crowdfunding can also get you great PR exposure. Nevertheless, crowdfunding does not normally generate large sums of capital, and maintaining a campaign can be time-consuming.
#4 Startup accelerators or incubators
Raising money is probably not the main reason why so many startups enrol in incubators or accelerators. The company can gain priceless business experience, get to know the market or capture the interest of investors. In addition, the majority of startup accelerators and incubators offer stipends reimbursed during the acceleration programme or a grant paid after completing the programme.