We have compiled the following guide to help you achieve your funding goals.
You can secure financing with these 9 types of business loans.
Grant funding can be a great source of startup capital if you qualify. Although grants don’t have to be repaid like a business loan, they are certainly not free as they can take a lot of work to get.
Grants are essentially “free money” that doesn't
require repayment making it virtually risk free.
Successfully receiving a grant can provide business coverage, visibility,
and credibility which can be even more valuable than the money itself.
Once you’ve been awarded one grant, you are more
likely to receive others since other organizations will
see you as a reliable and credible candidate.
Grants require you to be very specific about how you are using the money and
can sometimes come with restrictions and conditions that need to be met once
you receive it. Be wary about these types of contingencies.
Despite investing a significant amount of time and effort into a grant
opportunity, receiving one is never a guarantee. Some grants receive
hundreds and even thousands of applications.
Grants require a significant time investment involving
lots of research and paperwork.
Raising funding from investors, also referred to as venture capital, is a form of private equity and is a type of financing that investors provide to startups and businesses that they believe have growth potential. In return for the capital, businesses provide investors a percentage of ownership in the business.
Venture
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Angel
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Friends &
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Accelerator programs are programs that give businesses access to mentorship, investors, funding, and other types of support. Typically accelerator programs focus on startups developing new innovative products, services, and technologies. There are hundreds of accelerator programs across the US ranging in size, focus, and offerings.
Intense application processes involving various rounds of applications, pitches, and in-person interviews. |
Some accelerators expect full time commitment during the program. |
Accelerators provide varying amounts of funding and funding terms such as convertible notes, loans, and equity investments. |
Accelerator programs are very competitive but can bring startups immense opportunities, capital, and prestige. |