Tuesday, October 27, 2009

Great Funding Opportunity for Start-ups

By The Entrepreneur School Blog 
Learn How to Start a Business: 

We have pointed out the horrible nature of angel investing help organizations, those guys that charge you $500 to $5,000 for advice on how to raise angel money and then introductions to some angels.  These groups almost never help land funds, and the unwitting entrepreneur can spend lots of time and money chasing a dream.

So today, I wanted to tell you about a new, exciting, safe way to raise funds.  This method probably wont be useful to raise $100,000, but if you need $10,000 or so, it would be a great bet for you.  Fred Anderson, from Atlanta, was interested in starting a car inspection center.  He tried banks and other traditional outlets, but was not able to find the resources.  So, he placed an ad on Kiva.org and soon had raised the needed $7,000 from almost 200 investors in 15 countries.

Kiva.org was designed to provide micro-financing for super-small businesses in poor countries like India.  You can go on Kiva, see listings of hundreds of small businesses around the world, and invest in companies that appeal to you.  You invest as much or as little as you wish, even just $25.  And, incredibly, the default rate on loans like this is very small, usually less than 2%.  Its a great way to help the poor and a powerful website.  The site now allows U.S. based firms to list their opportunities too, which is how Fred was able to get involved.  If you want to start a small business here in the U.S., we recommend giving kiva a try……
Note from Lisa:
Or if you would like a better way to invest your money for a good cause, instead of having it sit in a bank savings account earning next to nothing, this could be a great alternative!!
Disclosure of Material Connection: I have received one or more of the products or services mentioned in various blog posts for a discount or free in exchange for my unbiased review. I will always give my honest opinion regardless of any compensation received. Some posts may contain affiliate links. When you click on those links to make your purchases, I receive compensation at no extra cost to you. I love it when you do that. ;) So thank you!

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