Process / IDC Inventors Guide / Chapter 6: Funding Your Idea

You may be fortunate enough to be able to fund the project yourself, however, most inventors need financial backing from an outside source. Getting other people on board can also be helpful as they will have the skills and experience that can aid in the development of your invention. Finding funding can be one of the greatest challenges in the entire inventing process and it is impossible for us to go into great detail. However, we do have a few tips that may help.

Research

You must research different funding strategies thoroughly; there are many companies and government organisations that can help you with funding as well as putting you in contact with the right people.

Finding Partners

It is always best to have several money-raising options as an entrepreneurial inventor. One of these options is finding financial partners, either an individual, a group or a firm that may have a vested interest in your product. You can provide the invention and your partners may bring the rest of what you need to the table. Your partner can provide whatever they do bring to the team for free, in exchange for a percentage of any future profits. There are a few different ways to find partners; you can place an advert in a newspaper or magazine, contact an investors organization or approach a bank and some other traditional financial sources who may be willing to finance your idea.

Venture Capital

Another way to find capital is to find a Venture Capital Firm. This firm will invest in your growing company and will give you the financial backing you need in order to advertise, do research, build an infrastructure and develop the product. The Venture Capital Firm will make its money by owning a stake in your company. Financial agents who work for a finder’s fee may be able to help you find a Venture Capital Firm that is willing to invest in your company.

Local and Government Programmes

Local, state and government programmes that provide businesses with financial assistance are another option to finance your invention and company. Try to research small business funding and angel network programs. Another option is to research government grants.