13 May /14

Language Services for Start-ups

startup fundingRegardless of business, there is one thing that all companies initially need: funding. In the past, startup capital initially came in the form of personal savings, private loans from family and friends, and traditional business loans from financial institutions. While for many entrepreneurs those basic forms of startup funding still provide the initial boost to get their business off the ground, the changing capital needs of new ventures have triggered a myriad of new investment services directed at the startup market, ranging from traditional venture capital to subsidized angel investing and entirely new concepts of multi-user funding platforms.

Venture capital and angel investing are essentially the same model of startup capital investment; however, there are some structural differences, such as the potential investors. Venture capital companies are, of course, answerable to their own shareholders, who demand an investment that maximizes return, while angel investors are, essentially, accountable to themselves or their organization. Ideally, they both seek promising startup businesses that are in need of capital, and in exchange for this capital, businesses are willing to surrender a stake in the ownership of their business to the investment firm. Though the rewards of such investment can be substantial, the process and timeframe until a return of investment can be expected can be long and arduous. Investors will therefore naturally give preference to a business that is already operational and shows at least a modest level of initial success. While such stringent demands help to assure investors that the business is worthy of investment, it does, unfortunately, narrow the scope of businesses that can be successfully funded.

As many business ideas fail to attract investors from the traditional capital system, entrepreneurs took it upon themselves to develop and alternative and less restrictive form of capital funding. Born out of the fruitful combination of financial necessity, new technology, social media, crowdfunding emerged as way to generate startup capital for businesses formerly excluded from investment funding. Essentially, what crowdfunding has done is to allow an existing business, a startup, or even just an individual with an idea for a startup the opportunity to present their idea to a broad array of individuals who, for whatever reason, are willing and wanting to provide funding. Not only is this form of funding structurally different from the traditional methods, but the funding itself can have different forms, some are only basic loans, and some are more philanthropic donations without any obligations for pay back, while others follow the traditional cash-for-ownership model.

Though the funding methods for startups may be different and varying, one thing is well documented: the market for startups and startup funding is booming. Investment based startup funding in the first quarter of 2014 was $9.47 billion in the US alone, a 57% increase from the same period of 2013 and the highest level since 2001. Crowdfunding, while being harder to track due to market fragmentation, had more than 1 million individual campaigns worldwide in 2012 (so the current number is easily in excess of this) and has seen significant year over year growth.
Thanks to supply and demand, globalization, communication, and technology, there is a funding option to meet the needs of every business. Still, a startup still needs to be able to properly communicate its ideas to potential investors, and this can be an issue when dealing across linguistic barriers.

EVS Translations can help provide language services for start-ups!

EVS Translations is a DIN ISO 9001 and DIN EN 15038 certified international translation company. With 70 translators in 7 offices who cover 30 language combinations and the capability to work across time zones, EVS Translations is specifically set up to complete complex, high-volume multiple language translations.

Startup founders – learn more about how we can assist you through the process of successfully setting up, funding and marketing your new business and give us a call TODAY.
Our USA and UK translation offices will be happy to answer all your questions!
Atlanta office: +1 404-523-5560 or send us an email: quoteusa(at)evs-translations.com.
Nottingham office: +44-115-9 64 42 or send us an email: quoteuk(at)evs-translations.com.