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Funding Options
How does it work?
Who is it suitable for?
Pros
Cons
Bootstrapping
Business owners use their personal savings or reinvest revenue from their jobs.
Small businesses that require minimal capital to start
Full control
No equity loss
No debt
Limited growth potential
High personal financial risk
Lack of external financial support and business guidance
Loans
Banks provide capital with agreed repayment terms and interest.
Entrepreneurs who want full control but need capital and can confidently repay
No equity loss
Predictable repayment terms
Debt accumulation
Personal guarantees
Strict credit requirements
Angel investors
Experienced entrepreneurs invest personal funds in exchange for equity.
Businesses looking for mentorship, connections, and substantial funding
Industry expertise
Financial support
Strong network
Ownership dilution
Potential loss of control
Pressure for high returns
Venture capital
Firms or groups invest in high-potential startups in exchange for equity.
Startups that require significant capital to scale quickly
More funding Access to expertise and networks
Rapid scaling potential
Loss of significant ownership
Intense pressure for fast growth
Crowdfunding
Business owners raise small amounts from a large number of backers via platforms like Kickstarter.
Businesses with innovative products that have already attracted interest
No equity loss
Built-in market validation
Free marketing
Time-intensive campaigns
No guaranteed funding
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