You're not only excited to put it to life, but you're also ready to transform it into the world's biggest startup. You may have taken the first steps toward figuring out your business.
Perhaps you've decided on the best business model, selected a co-founder, and created a target pyramid to chart the first moves.
But there's still one major issue: you don't have enough money.
For many startups, a shortage of financing is a significant problem, and it is a huge cause that many companies cannot get off the ground.
The Different Types of Funding
There are two types of financing mechanisms for startups: equity-based and debt-based.
Debt as a Form of Funding
Debt is money that you're obligated to pay back with interest for a certain amount of time. It's a source of finance that all of us are sadly familiar with.
Offering Equity in Return for Funding, on the other hand, refers to the sale of a share of the company's ownership at market value in exchange for cash.
Grants and Gift Grants
Grants are much more popular for charitable organizations, nonprofit organizations, and social projects. Don't be envious; getting a foot in the door as a grantmaker is difficult, and many grants come with strict standards and supervision.
Six Funding Options for Your Startup
1. Bootstrap as Long as you Can
2. Your Family and Friends
3. Crowdfunding Platforms
4. Getting a Government Grant or Loan
5. Accelerators
6. Investors
Conclusion
There are several different options to get company support, and a lot of it depends on the level of experience and track record. As all of the founders highlighted on Foundr will testify, we at Foundr are huge supporters of bootstrapping as long as possible for early entrepreneurs.
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