Finding Funding: An Overview

All startups (well most of them) need to find funding in some shape or form, from bootstrapping and peer lending, to bank loans, angel investors and crowdfunding.  So which one is for you?  Have a look at the options.

  1. Bootstrapping - This is where you use all available money you have, without using external funding.  This great resource from Basecamp lists companies that have not used external funding.
     
  2. Crowdfunding - Join the crowd!  Get lots of people to invest a little bit of money to fund your business.  Here's a great crowdfunding sites list from An Entrepreneurial Life.
     
  3. Angel Investing - Angel investors generally are individually, investing their own money in ventures of their choice. Here's some more info:  What is an Angel Investor?
     
  4. Venture Capital - Venture capital involves a group of investors putting money into fund, which then invests in multiple ventures.  This isusually high risk, high return.  Read more from Building a Business.
     
  5. Peer to peer Lending - Also known as P2PL, this form of investment is crowd lending: sort of like banking without the bank!  You invest money into an account, which is then invested normally in individuals.  This is done through various online platforms. Read more here.
     
  6. Bank loans - Bank financing may not be the best option for some startups, but as long as you realise the issues, you may find it worthwhile.  Startups has a great article on bank financing.
     
  7. Competitions and awards - There are many competitions available to win funding and support with.  Check out the Launchpad's list. . .

No matter which avenue you decide to go down, make sure you have researched what is best for you and your venture.