What are the Various Funding Sources for Your Startup? June 30, 2021 RICCentre When it comes to finding funding sources for your startup, a lot of Founders focus on the traditional forms – bootstrapping and finding investors – but there are so many options you may want to consider. In this blog, we outline nine different types of funding sources for your startup. Bootstrapping Bootstrapping is considered funding your startup by yourself through your savings. When you bootstrap your startup, you do not have to give up control of your company which a lot of Founders consider a benefit. Hear from our clients Aviron and PaymentEvolution on how they bootstrapped their businesses. Friends and Family Support A lot of times we forget that there are people in our close circles who would be interested in supporting us. People that trust us and believe in what we’re building and wish to provide financial support. Focus on your inner circle and then expand your outreach from there. Crowdfunding Crowdfunding involves raising money for your project or startup by collecting small amounts of money from a large number of people, usually through sites like Kickstarter or Gofundme. Quanta Vici, a RIC Centre client, surpassed their fundraising goal by 1072% within the first month of their launch using Kickstarter. Small Business Grants Take a look at some of your local economic development offices, the office for the city or town you live in or entrepreneurship spaces like accelerators or incubators to see if they are offering any grants for new small businesses. These could be a great source of funding to help you get started. Loans or Lines of Credit If you’re looking for cash quickly, you can take out a loan or line of credit through your bank. Oftentimes, these are offered at a lower interest rate and can be a good short-term solution. Incubators These organizations are typically government funded and are able to provide you with resources in exchange for equity in your business. Not only can they offer funding but they can also offer mentorship and guidance when it comes to building your startup. RIC Centre is an Incubator for Ontario-based startups and has a specific Incubator program to help your tech startup scale. Angel Investors Angel investors are “individuals who provide capital for a business start-up, usually in exchange for convertible debt or ownership equity,” according to Investopedia. There are events that happen throughout the year that could help pair you with the right Angel Investor. It’s important to find an angel that understands your industry. Venture Capital “Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions,” according to Investopedia. As a general rule of thumb, it’s best to not source this type of funding in the early stages of your startup. Finding the right venture capital can take a long time, so be prepared to spend a lot of time searching and closing the deal. Here are five steps on how to prepare for VC funding from Ripple Ventures. Bartering Bartering is an exchange of goods and services for cash. Sometimes you can find a way to offer your products or services in exchange for cash to help fund further research and development or marketing tactics. If you are looking for funding for your startup or venture, try any of the options above or reach out to us and we may be able to support you. Get the opportunity to pitch to investors in our Champion Panel where you’ll provided feedback on perfecting your pitch. RIC Centre is all about helping businesses like yours succeed. On the Blog: Read More about Funding for Startups Top 5 Things Investors Look For in Startups What information do investors want to know about your company before investing in it? Here are the top five things investors look for in… Read more How to Prepare for Your First VC Fundraising Properly preparing for your first VC meeting will greatly affect your chances of success. There’s more to it than just expressing your vision for the company and… Read more Early-Stage Government Programs for Your Startup To help you figure out the kinds of funding programs available for early-stage startups, we reached out to some of RIC Centre’s tech-focused entrepreneurs… Read more About the AuthorKierstyn PareSocial Media Director, King Street MediaKing Street Media is a Toronto-based marketing and creative agency focused on purpose-driven growth. They support entrepreneurs, businesses and nonprofits by providing dedicated services ranging from digital advertising and social media marketing to brand strategy and content creation.