What are Common Fundraising Methods?
Here are some of the most common methods for fundraising as a startup:
1. Bootstrapping: Fund the business yourself.
2. Friends, Family, Fools (FFF): Fundraise through your closest network, your friends, and family.
3. Small Business Loans: There are countless banks that focus on small business loans.
4. Angel Investors, Venture Capital, Private Equity, or Institutional Investors: These are traditional groups that provide funding to startups, and each has it's own set of pros and cons, depending on the size of your company and your goals.
5. Corporate Venturing: Often times, corporations have a spinoff in mind, and will deploy capital to a startup that fits their vision (usually in exchange for a majority ownership of the business).
6. Crowdfunding: There can be power in the masses, as crowdfunding invites higher numbers of retail investors to invest lower quantities in exchange for different tiers of benefits.