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Sintezis Startup Studio Limited Chosen for Newchip’s Seed-Stage Global Accelerator Program

We are proud to announce that we have been chosen for Newchip’s Seed-Stage Global Accelerator Program. NewChip functions as an Executive MBA program lasting 4 hours a week, allowing participants to complete all obligations and tasks at their own pace. It is present in 50 countries and 250 cities worldwide. It brings help and guidance to businesses by providing the tools and skills necessary to fund, build, and scale.

NewsChip cuts fundraising time in half

Founders are rarely taught how to raise capital quickly and successfully in traditional classroom-style accelerator programs. The average startup funding round lasts 12 months or longer, with only 4% of companies succeeding.

The Newchip Accelerator cuts fundraising time in half, while more than 70% of companies that went through the program can successfully and independently raise capital to finance their growth.

Since its launch in 2019, this remote, equity-free accelerator has helped over 1,500 businesses from 50+ countries to raise over $ 450 million in funding, with an estimated $ 9 billion portfolio.

It offers three six-month accelerator programs based on the stage of the company: Pre-Seed, Seed, and Series A. Its extensive network of worldwide investors, strategic partners, and mentors assists firms with everything from building your team and prototype development to high-profile VC investment, corporate alliances, and everything in between.

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Seed Funding in A Nutshell

Seed capital is a small investment made at the start of a business to assist it set itself up for long-term success. Seed money is the first step of equity fundraising for a firm. A company’s first round of cash is usually seed funding. Investors who put money into a startup hope that the founders will be able to negotiate the business world and build a profitable, high-growth company. After receiving initial capital, entrepreneurs can move forward with hiring employees, renting space, launching sales and marketing campaigns, and developing new products. High-growth firms frequently burn through their first investment before turning a profit.

Upsides and Downfalls of raising Seed Money
  • There is no risk to your assets or financial security. When beginning a new firm, raising seed money protects your finances. Entrepreneurs have taken personal risks and even financed their firms with credit cards.
  • Investors give your company strategic business guidance. It is pretty challenging to start a business. Experienced investors can assist you in the early phases of your company’s development.
  • Accelerate the expansion of your new company. Investor funds can utilize the improvement of products, services, and personnel. Extra funds enable your company to develop products and services that stand out from the crowd.
  • More time and flexibility to fine-tune the company model in response to market demand.
  • The new business’s equity has been reduced. In exchange for money, entrepreneurs give up equity in their companies. In the future, this stock could be worth billions of dollars.
  • The complete control over the company is lost. Investors may decide to force you out of the firm you started. When raising funds from investors, this is an unavoidable risk.
  • Investors may expect a premium because investing in a young company. Seed money is always a gamble. When you invest in your firm early on, investors will expect more from you.
  • Regulatory compliance costs related to seed money. Maintaining compliance with all regulatory obligations can be costly, diverting funds from other areas of your organization.
Questions you need to answer prior to raising a seed round
  1. What is the valuation of the company?
  2. How vital is it to keep the company under your control?
  3. Do you have a backup plan in place if your firm grows more slowly than you anticipated?
  4. Are there any other financing options available, such as SBA loans?
  5. Are the market and opportunity realistic and substantial enough?
Remember, startups don’t usually start making money right away. Many businesses suffer and eventually close due to a lack of seed investment. Another option is to apply for a business loan from a bank. However, this can be costly for the company due to hefty monthly interest payments. Overall, seed funding may be the most effective way for a company to succeed. It provides a simple and effective finance solution that allows your new business to flourish and get off the ground. Raising seed money is difficult, but it can pay you in the long term if you play your cards well.

2022 / 06 / 01

3 minutes