Different funding for start-up ventures

. Describe different ways start-up ventures can be funded.

 

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 ANSWER

Sources of Funding for Business Startups

 

 

 

 

 

 

 

 

 

 

 

Star-up businesses require a diverse approach to funding for their success. This paper highlights the various ways of funding a startup business. Funding startups need such options as crowdfunding. This type of funding involves creating a crowdfunding campaign using such websites as Kickstarter or Indiegogo for the public to contribute towards a business they believe has the potential to succeed. Such people could either pledge money, buy the company’s products on a promotion basis, or donate funds towards a business startup (Heitzman, 2020). Venture capitalist presents a suitable way of raising money towards starting a business. A venture capital investor would offer to financially support startups and offer other resourceful assistance for the success of a newly created business. Considering an angel investor is equally a good way to fund a new business.

An angel investor provides financial assistance to a startup business as well as providing mentorship and business management on behalf of a startup for its success (Heitzman, 2020). Individuals with excellent credit history would also use their credit cards to access funds on credit towards their new ventures. Such funds are often available from financial institutions like banks and other credit firms. The financial institutions provide financial advice to their borrowing customers for the success of their businesses. Finally, considering small business loans to jump-start a business operation is a viable funding option. Numerous options for accessing a small business loan are available with the microfinance institutions which provide startup funds at a fee alternatively referred to as loan interest. Such startups must consider presenting every detail of the way their borrowed funds will be used for them to qualify for such business loans. Considering various options like crowdfunding, venture capitalists, angel investors, credit cards, as well as small business loans, therefore, present good options for startups to raise funds.

 

References

A.Heitzman (2020). 5 Best Ways for Funding a Startup. Retrieved from:    https://www.inc.com/adam-heitzman/5-best-ways-for-funding-a-startup.html

 

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