TMCnet Feature
August 22, 2019

Financing options for tech startups: Funding new technology

Technology is essential in the modern world. In fact, the technology market has been moving at an unprecedented pace for the last 10 years, and it continues to grow.

This explosion in technology has led to some fantastic inventions and a record high of tech startups. However, it should be noted that there were far more startups in Europe than the US during 2018. 

This should actually be viewed as a good thing if you’re looking to start a tech business and need funding. The US needs to keep up!

The idea of financing can seem intimidating, especially if you have little experience with lending firms. You may also find that some of the bigger banks don’t have much interest in funding small scale startups, you simply won’t fit their criteria.

Fortunately, there are several options to help you get the funding you need for your tech startup, no matter what the size of your business.

Business Credit

Instead of targeting the big banks which have set criteria and a pass/fail approach. Check out the smaller credit unions and even local banks. They will be more interested in your idea at a personal level.

With the right approach, you can even get the funds you need as business credit, reducing your personal liability if it does go wrong. Check out this guide to how to get business credit in this market, you’ll be surprised how simple the process is.


This is becoming a popular option for many startups, especially those that have been refused finance elsewhere.

Crowdfunding simply means putting your idea on the web and getting people to donate to your business, this raises the funds you need. In return, these people get the first examples of your products, or they get a discount from your products.

The exact details of the package you offer will depend on how much they donate. But, the more exciting and appealing your new technology, the better the response you’ll get.

A variant of this is to get several key members of staff on board and working for nothing. Their reward will be in a share of the business, instead of cash.

Friends & Family

If you have friends and family who are prepared to invest in your idea and have the available funds, then this can be a viable route to help you get the business off the ground.

Of course, you need to be very clear regarding the risks if you are unable to repay the funds. You really don’t want to be in a position where you lose your business and your family/friends.

Government Grants

Technology is important, you’ll find there are a number of grants available to help with business startups. It’s worth checking to see if you can get one.


You can also borrow funds of investors who will lend in return for a share of the business, future profits, or a fixed return in a set period of time.

These people are professional lenders, you’ll still need to convince them of the viability of your tech startup.

In reality, you’ll find adopting several of these approaches can get you the funds you need for your tech startup while spreading the risk.

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