How to Get Seed Money for Inventors
One of the challenging tasks for an inventor is to find the backing to make his invention idea a reality. It takes a lot of money and time to turn an invention idea into a final product. Most inventors do not have the initial capital or seed money to invest in their own idea. Therefore, inventors might need to rely on other financial sources for start-up capital. To ensure that you get the money you need, you must have an excellent pitch and be prepared to convince others that your invention will be a success.
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Instructions
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Instructions
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Draft a comprehensive invention plan. This should highlight how you expect to spend the money and the projected earnings from the invention in the coming years. It also must include a detailed plan from idea to research to implementation and manufacturing. Include whether you'll be producing the invention on your own or outsourcing to a third party. Identify how much money you need. Don't pitch to an investor for as much as they are willing to give. They want you to know exactly how much you need and exactly how it is going to be spent. This will be handed out to prospective investors, so write your comprehensive invention plan well and present it neatly. Using an invention consultant or lawyer will go a long way toward helping you put together a suitable invention plan that attracts the attention of credible money sources.
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Construct a prototype. This is essential to show that you can produce the invention and let the investors see a physical working sample of what they are investing in. Several companies can help you with the construction of your prototype.
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Seek government and private grants. If your invention fosters social causes, it might be a good candidate for government or private grants. Also, if you as an inventor fall into some specific social demographics, like women or minority groups, you might be a more likely candidate for these types of grants. The federal government has a website dedicated to information on a variety of grants.
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Seek out angel investors and venture capital firms. Consult with your local chamber of commerce or search on the Internet for investor groups or individuals who might be willing to help you with seed money or start-up capital. Keep in mind that investors might require that you relinquish some creative control of your invention and you might have to pay back any money invested with interest or give them part ownership of your invention.
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Think outside the box. Try asking friends and family for investments, or ask private companies. If these alternate avenues fail, try more conventional routes such as banks, investment brokers and other financial firms. Even though this route might seem tougher, you don't have much to lose by giving them a try.
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Tips & Warnings
Carefully consider how much equity in your invention you are willing to give away. Hiring a lawyer or consultant who is an expert in the field of your invention type might help protect you from fraudulent investors.
References
Resources
- Photo Credit money makes money image by Andrey Andreev from Fotolia.com
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Comments
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I was praying and asking what to do with the new invention /idea I have. I need investors (backers with seed money) I fall in the category of a young minority women who have had many children and invested much time and morals into them. I need to spread my wings because the ten children are young adults now! It is a new season in my life! I am a grandmother of eight, soon to be nine in November 2011. I am proud of my children. None of them have been in legal trouble or on drugs or out abusing people. They are productive citizens that are trying to make an impact in life for themselves and others. I am a writer and I have so many irons in both hands, but they are not in the fire. I am not afraid to step out and move forward, I am just cautious not to get burned. I have been in the past. I've learned my lesson. Our country was and is built on dreams that people have put on paper and in the tangible realm of thinking and believing. Many ideas and inventions have come to fruition. I too want to make a difference in society and give what I can to help others and our world become a much better environment and safer place to live. I want to be able to help those less fortunate and I have created a device/ consumer product that would help the elderly, disabled persons and who ever else can benefit from it. I feel I was born to be a leader of something greater than myself! Sincerely, @[100001384054259:2048:Denise Taylor Daughtry].
