As a startup funding for your business may come from any of these sources:
- Financial institutions such as banks -you can apply fora bank loan, but you have to place a guarantee before you receive the loan.
- A venture capitalist who is an investor that provides capital to firms that demonstrate high growth potential in exchange for an equity stake. Venture capitalists will assess whether they can make a good return on their investment.
- Angel investors are accredited investors who use their own money to invest in small businesses.
- Bootstrapping– self funding (capital comes from the entrepreneur or family and friends).This source permits the entrepreneur to retain control of his/her business by avoiding the common equity for funding exchange.
- Seed funding-Funding from friends and family is called seed funding. You will have to give them a portion or percentage of your startup equity for taking the funds.
- Startup accelerators or startup incubators
- Crowdfunding Crowdfunding refers to the practice of obtaining small amounts of money from a large number of individuals (friends, family, customers, investors). An entrepreneur can apply online from any of the crowdfunding platforms or through social media. You get access to capital from a significantly larger pool of accredited investors.
- Government agencies:
- Department of Trade and Industry.
- Industrial Development Corporation.
- National Empowerment Fund.
- Small Enterprise Development Agency.
- Small Enterprise Finance Agency (SEFA)
- Technology Innovation Agency.
- Isivande Women’s Fund (IWF)
- National Youth Development Agency.
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