Have you hit a wall with what you feel is possible with your affiliate business? You might not have the time or resources to step up your growth, but you don’t know how to get more without additional resources. This is where investment can totally boost your business, as you can get a cash injection to push your business further than ever before.
Types of investment funding
There’s a lot of terminology around investment, which can be hard to get to grips with. Before you ask for investment, you should understand what each type of investment means and the ties that go along with it. This is an important step, as you need to know what you’re asking for!
These kinds of funding can come at different points in your business, so you want to ask for the appropriate funding at the right time. Here’s a rundown of the different types:
Angel Investment
These investors are ready to take a chance on a startup with the potential to get big returns. They’re usually independently wealthy and have the money to make a serious difference in your business. They may also be part of a network or group, which shares the equity and the risk associated with investing in a startup.
Private Investment
With hedge funds and investment firms, you have the opportunity to gain private investment. These are usually funded by groups, who have investments that are already bringing them in money. With the profits made from these, they look for new investment opportunities to bring in more profits.
Family and Friends
This is a solid go to if you have these connections, though you may want to be cautious about getting into business with certain family members! As long as you are able to read when your friends are interested, and when they’re not, you’ll be able to select which ones are right to ask for investment.
Series A, B and C Investment
These are quite easy to get to grips with, as the letters follow on with different stages in your business. In the A stage, you’re a smaller business looking for investment. In the B and C stages, you’re getting more advanced and can show off your track record a bit more. Generally speaking, the further you are in the process the more you can raise with less equity.
Crowdfunding
This is getting a lot more popular, with platforms like Kickstarter capturing attention. This hasn’t been used by iGaming affiliates as of yet, probably because of the volatility of the revenue streams within this area and also the moral associations to the vertical – however the brand or tech product developed in this space would have to be seriously innovative to get noticed on these competitive platforms.
The Bank
Finally, we come to more of a traditional investment method, going to the bank. For iGaming affiliates, it can be difficult to show these bankers what your business is doing, as there often aren’t many tangible assets. The interest rates can also be much higher for these lending sources than others and they fluctuate quite a lot.
When to ask for each type of funding round
Each of these funding rounds is different and tailored to suit businesses of certain sizes. Here are some that could apply to you at each stage:
Small business Start up
- Series A
- Crowdfunding
- Angel investment
- Family and friends
Medium Enterprise
- Series B
- Private investment
- Bank investment
Private or Global businesses looking to expand futher
- Series C
- Private investment
Accelerators and Startup Incubators
These are where your business can get a large amount of growth in a short space of time. They often combine investment and mentorship to get your business on the track to growth. If you need this kind of support both in terms of funding and the value that a mentor can bring by delivering expertise and helping you work through the start up phase (from technology to resourcing) then you should consider going through one of these programmes to help you get started. There is a lot of value to be had by spending time planning your strategy before you begin, and a start up or accelerator programme can help you do hit the ground running.
The importance of networking to find investors
Networking plays a big role in terms finding connections to various investment firms, especially in a niche industry like iGaming. If you’re looking for a private investor with experience, then the chances are you can meet them at the next affiliate event you attend. These can also give you paths to mentorship, which you can use to grow over time too. Getting your brand out there at networking events can also grant you more success, as investors are more likely to get involved with brands they have seen or heard of.
Investment can be a major boost, even for affiliate portals that are already doing well. Don’t discount this source of income if you want to reach your full potential in the industry.
