6 Ways To Finance Your Startup In Norway

In Norway, there are a variety of options for funding your startup. Choosing the most fantastic option or a combination of options will make it easier for you to accomplish your initial goals and obligations. Finanstipset, however, offers help in financing your startup easily in Norway. To get you started, we’ve outlined some of the alternatives accessible.

• Invested money (bootstrapping)

Investing your own money and resources in your new business is arguably the most common approach to get started. And it is also the easiest. Before you choose others below, you should go through Norskeanmeldelser for opinions and views.

• Bank loans

Many banks provide loans to clients who are launching or have recently launched a new business. The bank is interested in how and when you plan to repay the loan, so be prepared to discuss your budgeting strategy. Banks may also be interested in seeing if you have any form of collateral (assets) if you have difficulties repaying the loan. Contacting your local bank for options is an excellent place to start, and you can also look into Innovation Norway’s Startup financing (in Norwegian).

• Public funding

There are several government grants and loans available in Norway to help new businesses, particularly those with a business plan that addresses health, the environment, education, and social needs. To put it another way, you must meet one or more of the Sustainable Development Goals.

This option is best suited for startups that have a proven minimal viable product (MVP), a market-tested product or service, and a business model in place. Customers are never a bad thing, though.

• Crowdfunding

People will pre-purchase your product for later delivery, donate, or receive a prize, such as a token or a t-shirt, as part of a crowdfunding (folkefinansiering) campaign. Crowdlending, in which someone gives you money in exchange for a return on the project, or equity-based lending, in which the person or corporation receives shares in your company, are alternative options.  Kickstarter, Monner, Spleis, GoFundMe, Indiegogo, Folkeinvest, Startskudd by DNB, and others are available on Norwegian and international crowdfunding sites.

• Venture capital

Professional investors (businesses, not individuals) invest money (and, more importantly, experience) in qualified teams and startups, often with a ready-to-scale business plan. What exactly does scale imply? A venture capitalist will invest money in a firm with the expectation of a significant return on investment (ROI) in a few years – some predict an x3 return, while others predict a 20% annual ROI. A scalable idea, service, or product implies you (and the VC) can forecast (and validate as much as feasible) a million- and billion-dollar return.

In other words, venture capital is appropriate for significant prospects and risks. Instead of cold calling VCs, ask your network for a warm introduction. Come to the first meeting fully prepared; get advice from other founders and double-check your data. It will take effort and time to find the right VC firm for your startup.

There are a few Norwegian venture capitalists in Oslo and even more in the Nordics. The majority of international innovation and IT businesses will have a mix of Norwegian and international investors.

• Family and friends

Some early-stage businesses acquire their funding from friends and family who believe in their business idea. The finance could be in the form of a loan, a gift, or stock in your company. We propose formalizing such agreements for this option, Friends & family, and Trading equity or services to avoid conflicts. Is it reasonable to expect your buddy or the other company to get stock or other forms of compensation later? When? Will, the amount of money, spent scale proportionally if your company is valued at a higher amount, or will it be based on profit? What if you don’t make it in time? You will need a lawyer in tech to help make everything legal and official.