If you or your company has a remarkable idea but need additional funding to take it to the next step, you may want to consider angel invention funding. Inventor funding is a financial vehicle in which investors get part ownership of your invention and related developments in exchange for providing the funding to get your idea to that next level. Many times, good ideas get stalled because of a lack of funds. This concept can break your idea loose and get it from concept to the marketplace.
How Does Angel Invention Funding Work?
How invention funding works can depend on how far along you are in the process and the depth of your financial needs. Inventor funding may involve equity-for-funding swaps or partial loans and can also be affected by any previous investors in your invention.
Still not sure what it’s all about? Here are the basic steps of inventor funding:
- Determine where you currently stand in the process of your invention.
Are you still in the concept stage? Do you need funding for a prototype? Is your idea protected with a patent? Do you have a working prototype and need to take it to manufacturing? Have you manufactured on a small scale but need to level up? Know exactly where you are, so you can clearly communicate this to potential investors.
- Do you need expertise along with financial support?
Funding alone may not be enough to help you succeed if you don’t have the know-how required to take your invention to the next step. You may want to find a funding source with product development experience for best results.
- Demonstrate there is a need and a market for your invention.
You will have to show any potential investor that there is a hungry market for your invention—and one that is large enough to ensure your product’s success.
- Determine exactly who your competitors are.
Every product competes against something or someone in the marketplace. Know your competitors and their strengths and weakness, so you will know how to compete effectively.
- Create a plan to market the invention.
Who are your potential customers and how do you plan on effectively reaching them? Do you know what your customer acquisition costs will be? Will your invention be sold online, in a brick and mortar store or both?
- Build financial projections for your invention.
You will need to research and create realistic financial projections for your idea. This is critical in determining the viability of your invention for potential investors.
Where Can You Get the Right Kind of Support and Funding for Your Invention?
Sources for funding include personal resources and gifts from family and friends. Traditional banks will not finance an invention unless it is through a loan to an established company. There is potential, however, through angel investors who work in funding inventions.
One such company is Activation Investments. We have a team of professionals who can help evaluate your invention and determine its viability and potential. Getting started is easy by calling our offices at 678- 523-8759 or by filling out an online application and requesting an appointment.
If you are struggling to move your invention forward and need help getting it to market, consider angel invention funding from Activation Investments.