Four most common ways for startups to raise funds

  1. For businesses that are in the early stage
  2. For businesses that are scaling or entering new markets.
  3. For businesses that want to acquire shares of a particular business through leveraged buyout or management buyout
  1. Donation Crowdfunding: Funds raised to business owners without asking for anything in return.
  2. Reward Crowdfunding: Funds raised for businesses to create goods and services. The fundraisers will receive products and services produced or benefits related to them in return.
  3. Equity Crowdfunding: Investors have the rights to company’s shares in exchange for capital. They can also have the opportunity to receive dividends from the business in the future.
  4. Peer to Peer Lending (P2P lending): Similar to personal loans. It is a loan application in which the borrower asks to raise funds from investors with the aim of using it for the purposes stated in advance. It raises funds through an online platform, which offers loan agreements and repayments in installments with interests as specified in the contract.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store