7 Investment Funding Platforms for Entrepreneurs

Business and Research Investors Keep Great Startup Ideas Going

Investment funding platforms where investors work online across geographic areas are enabling entrepreneurs to obtain funding. The investors are typically part of the online community to collaborate and share deals with other groups of investors.  

Several million startups are formed each year, according to David Rose, CEO of Gust, an angel investor platform. As Rose said on the company's blog, "There are several million great people with a good idea who give up because they just cannot get initial funding."

Angel investors, the types of investors who offer smaller investments than venture capital companies can provide new ways to boost existing businesses and launch startups. New data from investment researchers at Willamette University reported angel investing is spreading throughout the U.S. and has produced a gross multiple of two and a half times their investment. These online platforms provide access to funding resources worldwide, specific to debt or equity investments. More importantly, small investments can generate positive results for entrepreneurs through collaboration with investors.

1
Kickstarter

Kickstarter logo
Kickstarter.com

Kickstarter is a funding platform for creative projects. Kickstarter gives people a place online to present business ideas, videos, and project plans to potential backers who register on the site. Funding is an all-or-nothing program so that the startup does not fall short of their goal. Kickstarter began in 2009 and has resulted in $350 million in pledges. In one example, the designers of the Padpivot, a creative tablet stand received funding for tooling and plastic parts from 4,823 backers that resulted in $190,352 pledged.

2
Gust

Gust is like a matchmaker for new business ventures seeking funding and support whether it is regional or worldwide. Since it began in 2005, Gust has been providing public and private online space where investor groups can collaborate on deals. Regional investor profiles can be searched so that your venture matches your preferred investment criteria. A range of group types include angel group, business incubator, and venture fund among a host of opportunities.

3
AngelList

AngelList is a platform for startup companies launched by two gentlemen who go by the names Nivi and Naval, who also own Venture Hacks, a blogging advice service also for startups. Startups can post profiles and provide details on Why Us? so potential investors can understand your business from an investment point of view. BranchOut is an online professional network funded through AngelList investors. AngelList is also developing the site for talent search, so the startups can access expertise to fill positions.

4
CircleUp

CircleUp Network offers opportunities for consumer business to raise money from an expert investor community. CircleUp partners with WR Hambrecht & Co., a registered broker dealer and member of the Financial Industry Regulatory Network Authority ( FINRA) and Securities Investor Protection Corporation (SIPC) who charge a small fee on the amount raised for offering your securities. CircleUp is ideal for already launched companies like Little Duck Organics, an organic kids food producer who was funded $890,000.

5
MicroVentures

Early stage or micro investments for startups is the goal in the MicroVenture Marketplace. The company MicroVentures is known as one of the financial industry's pioneers in crowdfunding, where a group of investors invest a small amount of capital, from $1000 to $10,000 in exchange for equity. MicroVentures, members of FINRA and SIPC, helps startups through angel investors for existing businesses that need between $100,000 and $500,000 in capital. The company is interested in unique ideas in internet technology, social, green technology, mobile and gaming to name a few.

6
Miami Innovation Fund

An example of a regional approach to funding for promising growth business is being done in the Miami-Dade County of Florida provided by Miami Innovation Fund. The fund managers specialize in informational technology, mobile device platforms, application software, interactive marketing and media, and telecommunications. Funding for micro-seed, pre-seed and seed stage are part of capital stage investment strategies that are preparing entrepreneurs and developers for first round of angel investing. The Miami Innovation Fund helped startup company, VR Labs in early stage funding for product research and development of technology products that bridge between spoken language and computer code in voice apps.

7
Kabbage

Kabbage offers short-term debt financing for companies who can't get funding through traditional banks. Kabbage investors offer from $500 to $40,000 to grow your business online to small ecommerce business ventures who typically sell on dotcom sites like eBay, Amazon, and Buy. Receiving money quickly was the key to advance these companies to purchase inventory to make online sales, like a company called The Latin Products, a reseller of specialty foods and utensils. Users can pay in six month installments with costs assessed, or pay early to reduce repayment costs.