Three Major Sources Of Funding Startups

Are you a new entrepreneur? Are you looking for ways to raise funds to start your business? These are some basic ideas that almost every entrepreneur uses to grow their business.


Without any financial help, the best way to build your company is by yourself. It is also possible. Bootstrapping is basically the process of starting a business using own savings and borrowed money from parents and buddies. You can also search online for various crowdfunding platforms via

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Equity funding

Bootstrapping may not be an option for founders. They can then purchase a stake in the company to invest. Startups that need a lot of money and want to grow quickly are better off risking wealthy companies. 

There are many equity options available for organizers who have diverse business ideas. Entrepreneurs with new ideas should try to get their company in an accelerator. The program is two to three months long and helps startups get through the early stages of development. 

The program will also help you find potential investors at the end. A few success stories have been launched by accelerators. In return for a 7%-10% stake in their businesses, the organizers received valuable guidance and funding from skilled entrepreneurs.

Debt funding

A startup in its early stages should not seek debt financing. This should be a last resort. In some cases, however, it is necessary to have a minimum amount of cash at hand. It is a good idea for a company to get a long-term, steady loan in these situations. 

This will save the company the hassle of looking for an investor. It is important to determine if the company is eligible for government-aided loans. These loans are often attractive because of their flexible repayment terms and high rates of interest.