From the article intro: "Startup funds will be harder to come by in 2012, according to hundreds of venture capitalists polled in a recent survey by the National Venture Capital Association.
...
In spite of the gloomy funding forecasts, there's still hope for entrepreneurs in need of cash in 2012.
In fact, small-business financing options outside the venture capital industry are rapidly proliferating in the digital age.
With just a few clicks, anyone can pitch a business idea to the growing ranks of angel investors.
In addition, a number of Web services now provide platforms for entrepreneurs to raise small sums of money from large pools of people -- a process known as crowdfunding.
Even Congress is showing deference toward the Internet's capacity to connect businesses with capital, as lawmakers weigh rule-changes that would allow entrepreneurs to use social networks to sell stakes in their startups. (Under current securities law, entrepreneurs can only solicit donations.)
Still, a large share of startup funds continues to flow from the old-fashioned lender that small-business owners love to hate: banks.
...
So regardless of whether you run a tech startup on the hunt for strategic Silicon Valley investors or you own a local restaurant that's in need of nothing more than a simple bank loan, entrepreneurs must recognize that in the new year, the fund-raising game has changed."
Here are the new ways to raise in 2012:
1. Banks
2. Crowdfunding
3. Contest and Accelerator Programs
4. Online Pawn Shops
5. Friends and Family
6. Angel List
7. Revenue-Based Financing
Fibd out more:
http://www.huffingtonpost.com/2011/12/23/startup-funding-7-ways-to-raise-money-in-2012_n_1161801.html#s563590&title=Banks
Rachel Chalmers illustrates five key reasons why it may not be such a great idea to get your startup funded by venture capital.
These include:
Key advice: VCs are optimizing for a very specific outcome (making a large as possible profit fast). Share that alignment, or don’t take their money.
Chances to convert a startup into a VC-funded success, are not very high, if you look at the numbers. But worse than that, is what you have to endure and give up to achieve that goal.
Useful. 7/10
Full article: http://modelviewculture.com/pieces/five-reasons-not-to-raise-venture-capital
Reading time: 7 mins.
See also: http://www.masternewmedia.org/bootstrapping-startups-guide/