Whether you’re seeking to raise startup capital via loans, bring on angel investors or crowdfund, the best funding option for your business will depend on your specific goals and strategies. However, regardless of which startup funding option you choose, one thing remains the same: You need to be able to clearly demonstrate your financial health to potential investors.
A tailored dashboard displaying clear, real-time financial insights will help you establish credibility and show that your company is well prepared to scale. It will also make it easier for investors to understand your company’s growth, allowing you to get the most bang for your buck.
The earliest contributors to a startup are often friends and family members, who provide seed funding and typically want to remain involved in the company for its formative years. Unlike traditional loans, this type of funding typically does not require an equity stake and can be an excellent alternative for entrepreneurs that are unwilling or unable to take on debt.
Startups that successfully secure seed or angel investment can move on to Series A funding, which is procured when a startup becomes more established and opens itself up to further investments. Series A investors are looking for a higher valuation than early seed investors and can often have a major impact on a startup’s future.
Government, foundation and private grants are another source of startup funding. Entrepreneurs can find available grant opportunities by researching online databases and using specialized platforms that match borrowers with donors. Those who win grant funding are required to submit proposals and other documentation, and may need to present their ideas in person.