Understanding The 6 Types of Business Funding
When you run a startup, securing the right types of funding at the right moments can feel like a never-ending game of chess. You have to think twenty moves in advance, and if you make just one mistake, you might end up sabotaging the whole game. And plenty of founders do sabotage the game: It’s estimated that 80% of startups don’t make it past the first year, and 90% fail over the long run. And even those who do make it have their regrets: The average SaaS founder walks away with 20% equity in their company, with some hitting numbers as low as 1% or 5%—not much when you consider the overall emotional, financial, and spiritual investment founders make into their companies. So, what can a startup founder do to ensure they’re navigating raising funds strategically? Keep reading to learn everything you need to know about how to raise funds for startups, including the different types of funding available, which growth stage is most appropriate for each, and what investors look for in a startup.