Alternative Financing Options for Digital Nomad Startups: Exploring Crowdfunding, Grants, and Bootstrapping
Digital nomads are starting to take the world by storm, and they're bringing with them a new way of doing business. Many digital nomad entrepreneurs have found that traditional financing options aren't suited for their unique situation. As such, there are three ways you can go about alternative financing for your startup if you're a digital nomad: crowdfunding, grants and bootstrapping.
Alternative financing for digital nomad startups can be done in at least three ways.
There are three main ways to finance your digital nomad startup. Each has its advantages and disadvantages, but they all have the same goal: to get you out there with a product or service that people want to buy.
Crowdfunding - By raising money from a large group of individuals, you can gain access to funds without having to go through traditional financial institutions such as banks or venture capitalists (VCs). You may also be able to attract new customers through crowdfunding platforms like Kickstarter or Indiegogo, which offer perks like free access for early backers of a project. However, not all projects are funded on these platforms; only about one in ten projects reach their funding goals on Kickstarter after three months' time has passed since launch day.* Grant-making organizations - Grants provide funding for specific projects or activities from non-profit organizations such as foundations, universities and government agencies.* Bootstrapping - This refers specifically to using one's own capital instead of outside resources like loans/investments/grants etc., meaning there will be no outside debt burden once profits start rolling in
Crowdfunding is a great option for many digital nomad entrepreneurs.
Crowdfunding is a great option for many digital nomad entrepreneurs, who often have little or no access to traditional financing options. Crowdfunding can help you raise money for your business and build a community of supporters. It can also get your product or service into the hands of customers before it's fully developed.
In addition to Kickstarter and Indiegogo, there are several other popular crowdfunding platforms that accept applications from international entrepreneurs:
Fundable (US) - A platform dedicated specifically to funding startups through equity-based investments
Seedrs (UK) - An equity crowdfunding site with an emphasis on SMEs looking for seed funding
StartEngine (US) - An equity crowdfunding platform focused on helping companies raise capital by selling shares directly through their website
Digital nomad entrepreneurs can also consider grants, if they work within a specific type of industry and are eligible for one.
Grants are another alternative funding option that digital nomad entrepreneurs can consider. If you work within a specific type of industry and are eligible for one, grants can help you fund your business. These include:
Grants for product development or service provision (e.g., research).
Regional grant programs for startups and small businesses that focus on specific geographies or industries (e.g., rural areas).
National competitive awards focused on unique products/services or projects with high growth potential (e.g., clean energy initiatives).
Bootstrapping is an option if you're willing to put in the time and effort to build a successful business without outside help.
Bootstrapping is an option if you're willing to put in the time and effort to build a successful business without outside help. You can start a business with little or no money, using your own skills and resources.
There are many ways that digital nomads can bootstrap their startups:
Freelancing - If you have skills that others need, such as writing or graphic design, freelancing is an easy way to make money while traveling. Websites like Upwork allow freelancers from around the world to connect with clients who need their services (and pay them directly).
Many types of alternative financing may be right for you, depending on your skill set, industry and circumstances.
Crowdfunding: crowdfunding is a type of alternative financing that allows you to raise money from your network of friends, family and supporters. There are many different types of crowdfunding platforms available today including Kickstarter, GoFundMe and Indiegogo.
Grants: grants are funds given by organizations such as government agencies or non-profit foundations in exchange for certain requirements being met by the recipient (e.g., building a new community center).
Bootstrapping: bootstrapping refers to working without external financing while still trying to grow your business at a rapid pace so that it can eventually become profitable enough to attract outside investors or lenders
We hope that this article has given you some insight into how you can fund your digital nomad startup. It can be difficult to find the right funding source, but it's important to remember that there are options out there and it's worth exploring all of them before giving up on your dream of being an entrepreneur.
