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Raising Startup Capital:
Funding Options and Sources
Raising startup capital is one of the biggest challenges that entrepreneurs
face when starting a business.
their business. While self-fund-
ing can be a great way to get
started, it may not be a sus-
tainable option for long-term
growth.
Friends and Family
Friends and family can be a
good source of startup capital,
particularly in the early stages
of your business. This can be a
great way to raise capital with-
out giving up equity or control
of your business. However, it
is important to structure these
investments carefully to avoid
potential legal or personal
conflicts.
Crowdfunding
Crowdfunding is a relatively
new funding option that has
become popular in recent
years. This involves raising
capital from a large number
of individuals through online
platforms such as Kickstarter
aising startup capital funding options and sources or Indiegogo. Crowdfund-
is one of the big- for startups. ing can be a good option for
gest challenges that businesses that have a strong
entrepreneurs face Self-Funding social media presence and can
Rwhen starting a busi- Self-funding, also known as effectively market their idea to
ness. Whether you are looking bootstrapping, is the process potential investors.
to fund a new idea or expand of using your own personal
an existing business, there are savings or assets to fund your Angel Investors
a variety of funding options business. This can be a good Angel investors are high-net-
and sources available to help option for entrepreneurs who worth individuals who pro-
you raise the capital you need. have a small amount of startup vide funding for startups in
In this article, we will explore capital or who want to main- exchange for equity or a share
some of the most common tain complete control over of the profits. Angel investors
16 IN THE MIND OF STARTUPS
