A business without a funding source will flounder under the weight of its own debt. Funding is the fuel on which a business runs. A business can take different avenues to attain funding, and more than one option can be used.

  1. Incubators and Accelerators- An incubator nurtures the business throughout the startup phase and provides all the necessary tools and advice for the business to stand on its own feet.
  2. Angel Investors- An Angel investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.
  3. Venture Capitalists- Venture capital (VC) is financial capital provided to early-stage, high potential, growth startup companies. The venture capital fund earns money by owning equity in the companies it invests in, which usually has a novel technology or business model in high technology industries.