Before a new business owner can raise capital for his startup, he must analyze the various sources of financing, find the one that is most compatible with your needs, requirements and stage of development of your project. Funding and fundraising options for your startup project:

Invest your own savings

When you can allow yourself to spend your own money on creating and developing your startup project, this will be the best option, since you will be the only recipient of profit.

Help from the bank and other financial organizations

You can also take a consumer loan from the bank by submitting your business plan. Another option is to obtain a loan on bail. Some microfinance companies provide loans, but at very high interest rates.

Incubators and accelerators

Many developed countries have incubators and accelerators created by the government, educational institutions or large corporations. You can get not only funding for a startup project, but also an office, equipment, and a place in the laboratory premises. The development of your startup project will be supervised by the smartest people in the world of startups.

Crowdfunding

Crowdfunding — a method of collective financing based on voluntary contributions. The crowdfunding initiator asks to finance his project, a product of ordinary people. For this, specialized Internet sites are used. The project development process is publicly covered. Contributions are made free of charge, although some bonuses can be promised to people. If, within a certain time, the required amount or a pre-agreed part of the amount, then the money already received is returned to their owners.

Venture capital

If you have successfully completed the launch phase of your product, already receive initial income, have a professional team, and also a clear strategy to ultimately sell your business or enter the IPO market, then you need financing of professional venture capitalists (VCs). They are an excellent source if you are planning rapid growth and need funding to achieve it.