Here are the most common ways to fund your venture:
- Bootstrap it yourself. Self-funding from your savings is always preferred as you don’t have to give up any of your ownership.
- Ask your “friends and family.” This can be a risky source as business relations can affect your personal relationships, yet they can be some of your biggest supporters and open to attractive terms for repayment.
- Find a major customer to front the beginning the costs.
- Sell equity to investors to people/institutions like , venture capitalists, and banks.
- Along the same lines as the preceding bullet, you could attend an or incubator. In return for learning a lot of great things from top advisors and some cash, you give up some equity.
- Use a crowdfunding website like . Make sure you read the fine print in your agreement with the various sites.
- Loans through the . A lot of different options here, and historically a solid option for small businesses.
- Peer-to-peer lending on a site like . Like crowdfunding sites, read the fine terms.
If you need some sound legal advice during your fundraising then feel free to stop by. We have some of the best freelance attorneys in the startup space available to assist you with the funding process. Our marketplace offers free initial consults, transparent flat-fee pricing, and 24/7 support. Hope this helps!