Startup Financing – What Are Your Some Viable Options to Consider?

No matter how creative and innovative your business idea might be, the essential elements of your startup are business funding. While you might be looking around among your peers, family, and friends for someone who funds a startup, it is not all that easy unless you know the types of funding for startups that you can resort to. This is precisely what we will be looking at in the following paragraphs. 

Business startup funding – which one suits your business best?

The startup business entrepreneurs must realize that the road they are treading may not be easy. Nevertheless, it is not absurd too. These are the different types of funding you can explore for your startup business. 

• Angel financing

Angel investors are usually individuals who invest in startup companies or firms in their budding stage in exchange for an equity ownership interest. Many angel investors are putting their money into startups, and this trend has accelerated over the years. 

The range of angel investments usually ranges between $25,000 and $100,000 per company. However, this amount can be higher as well. 

• Crowdfunding

This is one of the ways to fund startups. This is a practice wherein multiple investors, and funders raise money, usually through crowdfunding websites. The business funding is used for promoting products and services. 

You create a profile of your company, the type of business you are engaged in, and the amount you are looking forward to for the startup to kick off. Some of the websites where you can create a profile for crowdfunding include the following-

• • Indiegogo
  • Crowd Supply
  • Kickstarter
  • Crowdcube
  • SeedInvest
  • Crowdfunder
  • iFundWomen
  • Fundly
  • GoFundMe

• Small business credit cards

You will come across many such credit card issuers that meet the needs of the small business market. They offer several benefits like airline mileage, cashback rewards, and other perks. 

However, some issuers may want the card to be tagged with your credit history and let you offer a guarantee for the available fund. One of the biggest disadvantages of the use of funds startup is that the unpaid balance on the credit card attracts a huge interest that can range between 5% and 19.9% or even higher. But few issuers will allow you to enjoy low or no interest funding for the first few months. 

• Venture capital 

One of the types of business funding for a startup is venture capital. There are venture capital firms where you can turn to. Capital, potential customers, strategic assistance, employees, and partners are a few benefits you can avail of from this kind of funding for a startup. 

Aside from the above options, there are other avenues as well. However, select the one that will be the best for your business and will be in alignment with your business model.