How to get funding or investment for developing a product?

Seed funding is typically the very first investment of money used to for market research and developing product. Seed funding can come from the entrepreneur’s personal savings (e.g. from inheritance or a severance package from the founder’s prior job) or from “Friends & Family”. Seed capital is usually designated as equity, but it can also take other forms. For example, it can take the form of debt, including credit card debt. It can also take the form of government grants. The US Department of Energy, for example, provides grants for the development of products that benefit the environment and reduce household energy consumption.

You can also get seed funding in the form of subsidized rent at a business incubator. Many communities have incubators that provide funding for patent applications and help in product development. You may want to check with your local chamber of commerce, or local college or university, for a list of such incubators.

Venture capital firms can also be a source of funding for product development. Some venture capitalists specialize in developing and bringing a new idea to market. In addition to providing funds, they can introduce you to key professionals, such as patent attorneys or patent agents.

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