Funding Options
How does it work?
Who is it suitable for?Â
Pros
Cons
Bootstrapping
Business owners use their personal savings or reinvest revenue from their jobs.
Small businesses that require minimal capital to start
- Full control
- No equity lossÂ
- No debt
- Limited growth potential
- High personal financial risk
- Lack of external financial support and business guidanceÂ
Loans
Banks provide capital with agreed repayment terms and interest.
Entrepreneurs who want full control but need capital and can confidently repay
- No equity loss
- Predictable repayment terms
- Debt accumulation
- Personal guarantees
- Strict credit requirements
Angel investors
Experienced entrepreneurs invest personal funds in exchange for equity.
Businesses looking for mentorship, connections, and substantial funding
- Industry expertise
- Financial supportÂ
- Strong network
- Ownership dilutionÂ
- Potential loss of control
- Pressure for high returns
Venture capitalÂ
Firms or groups invest in high-potential startups in exchange for equity.
Startups that require significant capital to scale quickly
- More funding Access to expertise and networks
- Rapid scaling potential
- Loss of significant ownership
- Intense pressure for fast growth
CrowdfundingÂ
Business owners raise small amounts from a large number of backers via platforms like Kickstarter.
Businesses with innovative products that have already attracted interest
- No equity loss
- Built-in market validation
- Free marketing
- Time-intensive campaigns
- No guaranteed funding
