Startup Funding

Many people have the misconception that a “startup” is the same as a “small business” when in reality, they’re a whole lot different. Small businesses are rather the businesses that have smaller markets; businesses that have long-term goals. Startups, on the other hand, focus on penetrating the market to achieve and gain top revenue on a faster rate.

While many people are left dumbfounded as to how they can fund their startups, there are a few different but common ways how people fund their startups.

Not all companies are started and seeded from the pocket of their owners. As a matter of fact, a majority of them came from investors, loans, and even funding from different sources.

Different Types of Startup Funding

If you read about funding a startup business online, you’ll be flooded with a lot of jargons and terminologies that are hieroglyphics to you. But the truth is, there are only several ways on how you can successfully start funding for your startup.

Banks

If you don’t want to curb your personal savings or your credit score, then the next best option you would take to fund your startup company is to ask help from a bank. Usually, small business loans are considered as the typical and traditional way to gain and to obtain a startup capital.

They ask for little interest rates that wouldn’t hurt your startups journey of becoming worldly-renowned.

Personal Savings

Do you believe in your startup? If you do, then you would be willing to go all-in on it. From your personal savings, to some of your current monthly income – you would dare use it to  fund your startup. In addition to that, personal savings, as well as credit, are the most accessible ways or forms of startup funding.

You wouldn’t have to wait for approval; you don’t have to rely on anyone else to have it. You just run the risk of losing your personal savings for it.

Angel Investors

Angel investors are investors that are considered to be high in net worth. They are individuals who have the capacity to invest in startups that could fail or that could go wrong. Angel investors are usually willing to invest somewhere around thousands of dollars – while some invest in millions.

Although some people might look at this as a solution that is not feasible, angel investors are not always out in the dark. They’re always available and they’re even more accessible than other types and sources of investors.

What’s good about having an angel investor is that they can perform an investment decision on their own without the influence of management, partnerships, or superiority.