Funding for NY Tech Startups

Starting a tech company in New York City can be a challenge that comes with a variety of issues. For one thing, the commercial property in New York is expensive and that can dig into a start-up's funding quickly.

There are many different types of funding organizations who recognize the need for tech companies to find reliable financing to get off the ground. The New York City government has even joined in and offered resources to tech companies that reduce start-up costs and allow these companies to get off to a good start.

If you plan on starting a tech company in New York, then you need to be familiar with the different funding options that are available to you. By exploring your options, you will find the perfect combination of funding sources that will get your company off to a great start.

Angel Investors

Angel investors tend to be a preferred source of funding for tech companies because angel investors develop a personal interest in the success of the organization. A good place to start in your search for angel investors in New York would be the New York Angels website. This is a site that can get tech companies involved with mentors and financing options that will help get the tech company off the ground.

The Business Insider website offers the ultimate resource for angel investors in New York City with the Angel 100 list. These are the angel investors with means who like to get involved in tech companies very early in their development and help those companies to succeed.

Seed Funding

Seed funding is simply the money used by a tech start-up to get the company up and going. In some cases, seed funding can come directly from the tech company owner's savings or retirement accounts. But there are seed options in New York that tech companies can use that make the process a lot easier.

The NYC Seed organization is a group that was put together to help attract tech start-ups to New York and get those start-ups up and functioning. NYC Seed is actually a group of organizations that cover everything from funding to finding tech start-ups inexpensive or free resources. The New York City Investment Fund is one of the funding groups that offers low-cost funding to tech entrepreneurs in the non-profit and profit worlds.

State Grants

A tech start-up that wants to make its way in New York City should strongly consider looking into the NYSTAR program. This is a program where the state of New York puts entrepreneurs in touch with the funding and resources they need to succeed.

Tech entrepreneurs can be granted locations on State University of New York campuses and have access to resources and talent that would otherwise be unavailable. It is an excellent opportunity for a tech start-up to develop its product and put together the staff that will help the company to find success.

Investment Groups

New York is home to thousands of businesses and some of those businesses have banded together to invest in the future of the city. A good example of one of these groups is the Partnership for New York City. This is a group of investors, successful CEOs and experienced entrepreneurs who are already investing in tech start-ups that show promise in the city of New York.

Groups like the Partnership for New York City are hybrids between angel investors and seed funding organizations. These are private organizations that have a vested interest in the success of New York City, so they help out by funding new tech businesses and offering those businesses support and resources.

Try the Internet

The Internet has become huge for peer-to-peer lending and crowd funding options. Kickstarter is an excellent example of a crowd funding site that tech start-ups can use to raise funds. This is a helpful option because you do not need to pay back the funds, which lifts a considerable financial burden from a tech start-up.

When it comes to peer-to-peer lending, Prosper and sites like it are good options as well. These kinds of sites are not specific to New York City, but they offer a funding option that New York tech start-ups can use.

When you decide that it is time to get your tech start-up going, you should look to New York as your headquarters. New York has a variety of funding options that are specifically designed to help tech start-ups to succeed. Look into the options that you have in front of you and take advantage of the excellent opportunities that they offer.