Types of Funding
1. GRANT
A grant is an award, usually financial, given by an entity to a company to facilitate a goal or incentivize performance.
2. ANGEL INVESTORS
Angel investors are typically high net worth individuals who look to put relatively small amounts of money into startups, typically ranging from a few thousand dollars to as much as a million dollars.
3. VENTURE CAPITAL
Venture capital is funding that's invested in startups and small businesses that are usually high risk, but also have the potential for exponential growth. Venture capital is a great option for startups that are looking to scale big — and quickly. Because the investments are fairly large, your startup has to be prepared to take that money and grow.
4. FRIENDS & FAMILY
Getting money — in the form of loans or investments — from family and friends is another one that doesn't fall under traditional “small business startup loans.” But it's a common way for startup founders to get money from pre-seed funding to either start their companies or get help along the way.
5. LOANS
A small business startup loan is any type of loan that helps businesses with little to no business history. It's one of many financing options for founders who are looking to either get started or improve their young companies.
A. SBA LOANS: An SBA small business loan is a loan that is backed by the Small Business Administration (SBA).
B. CREDIT CARDS: While not a traditional “loan,” business credit cards are a great option for very early-stage startups who need help getting going.
6. CROWDFUNDING
Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals — primarily online via social media and crowdfunding platforms — and leverages their networks for greater reach and exposure.
7. SERIES FUNDING
Series funding is when a startup raises rounds of funds, each one higher than the next and each one increasing the value of the business. It's described alphabetically: Series A, B, C, D, and E.