When running a startup, a hurdle that most, if not all founders have to overcome is how to fund it. Raising funding is a challenging task for any founder, whether they are trying to do so from friends and family or venture capitalists. This infographic that we've designed explains the most common funding options for startups and what you need to obtain them.
In summary 5 types of funding are covered in relation to how difficult they are to obtain.
The 5 types of funding covered are:
Bootstrapping - The simplest way to build a startup is to either use skills that you already have, or invest your own money to complete important tasks.
Friends and family - Friends and family funding allows you to raise capital from people that know and trust you. Raising this type of capital is usually more attainable than most other types of fundraising.
Crowdfunding - Crowdfunding often allows ideas to be funded by their potential customers. In doing this, campaign owners usually have to have an audience or momentum prior to launching their campaign
Angel investing - This type of funding allows you to raise capital from independently wealthy individuals or successful entrepreneurs. They will often find different ways to work with your company besides from just providing capital.
Venture capital - Very few entrepreneurs ever raise venture capital. It often requires notable amounts of traction for your company and proof that your team is very strong.