Launching a startup business is not easy, and there are a lot of pitfalls that need to be negotiated. One of the main problems would-be entrepreneurs often face is funding their startups. Because, let’s get one thing clear, running a business costs money. A lot of money. And it’s often difficult for these prospective business owners to get the money they need to help their businesses thrive.
That’s why it’s so important to get funding from other areas. There are so many options business owners have in order to raise money for their companies. And, one of the main ones is to get investors. However, there are also business loans that can be taken out as well.
In the past, these would be awarded through banks, and businesses would pay them back over time. However, Stateside things are changing in this regard, and recent tech startups have been awarded money from a casino fund. Indeed, three local technology startups have benefited from loans taken from these funds, and totalling around $700,000.
The fund, known as VOLT Fund, is a part of Anne Arundel Economic Development Corp., and is supported by revenue from surrounding Maryland casinos. Of course, it wasn’t as simple as just awarding the funds to the businesses who needed it. Over 50 startups applied for funding, but, of the 50, only three were selected to be given financing.
The loan is a long-term award which businesses can use, interest-free, and pay back when they are in a healthy position. This is hugely important for developing businesses, and they need to have funding to help them in the embryonic stages. So many companies don’t survive past the first year or two, and that’s often because they struggle financially. But these three tech startups: SecuLore Solutions, PeerAspect, and CourseArc, have all reaped the benefits of funding.
Using lottery revenue from casinos to help fund businesses is a great idea, and it’s surprising that nobody has thought to do it earlier. Hopefully, we will reach a point where this becomes more commonplace, and startups can benefit from money in casino funds.