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7 
WWAAYYSS WAYS TTOO TO 
SSTTAARRTTUUPP FFUUNNDD WAYS YYOOUURR 
TO 
Bootstrapping 
Tap into personal savings, borrow 
from your 401(K), or keep your 
day job and use part of your 
paycheck to bankroll your startup 
until you can secure outside 
funding. 
WARNING 
Don't take it all. Keep an 
emergency fund in case a client 
doesn't pay on time, a pipe bursts 
and destroys equipment, etc. 
Raise money without giving 
up equity. 
Crowdfunding 
WARNING 
Don't get swept up in success 
stories. Unlike the Pebble Watch, 
most campaigns do not make 
500x their fundraising goal. And 
because preparing & executing a 
campaign takes months, it can 
slow your timeline. 
xxx 
xxx 
xxx 
SEED FUNDING 
figure out your product and target market. 
This early investment help fledgling companies 
develop products, research target markets, & 
start building a user base. Funding options 
include bootstrapping, friends and family, angel 
investors, and crowdfunding. 
WITHOUT IT, MOST 
VCs ARE WARY: 
If friends & family aren't 
confident enough in your 
idea to pony up cash, why 
should they? 
Credit cards 
Use credit cards to buy initial 
equipment and cover setup costs. 
You can buy some time & avoid 
interest charges by transferring the 
balance to other cards while you 
either wait for your first customers to 
pay, or secure additional funding. 
WARNING 
If you fail to get funding and can't 
pay off the debt in full, you're 
personally responsible for the 
balance — and the interest 
payments. 
WARNING 
You'll need a lawyer. There are a 
lot of regulation & legalities, and 
you'll need a private placement 
memorandum (PPM) for any 
offering you make. 
WARNING 
Bridge loan 
Crowdfunding is a great way 
to practice your pitch, get to 
know your audience, & tweak 
your product. 
Traditional Lenders 
You're ready to scale up but 
haven't been able to secure 
additional capital. 
Come to the bank 
prepared with a thorough 
understanding of your 
company's risks, a working 
business model, & a high 
credit score. 
Pitch to a large pool of potential 
investors, actively looking for new 
companies to back. Plus, platform 
posting requirements force you to 
have a viable business plan in 
place. 
Friends and Family 
It'll help cover the gap between 
when you'll run out of cash and 
your new funding kicks in. 
SERIES A FUNDING 
Scale your product & define your 
ideal business model. 
Your company has momentum & may be 
generating revenue, but isn't yet profitable. 
Series A funds growth, helping businesses extend 
their user base, scale geographically, or hire 
more staff. 
Angel Investors 
Incubators 
38% 
of startups get funds 
from friends & family, 
0.05% 
of startups get money from 
venture capitalists. 
WARNING 
Banks are lenders, not investors. 
Your business needs to be 
established enough to show a 
track record of steady revenue, so 
they can be confident in your 
ability to make payments. 
These accredited investors back 
companies in exchange for 
convertible bonds or ownership 
equity. 
They often band together in angel 
networks, pooling resources and 
providing advice to the companies 
they invest in. 
SERIES B FUNDING 
Scale Your Business. 
You have a good product/market fit & solid 
business model. Series B funds business growth 
to hire marketing & sales people, further scale 
your customer base (e.g. move internationally), 
or buy out a competitor. 
VCs invest initial or growth 
capital for equity. 
Many VC firms also have 
specialists on staff to provide 
expert guidance & ensure 
their investment pays off, 
which can be helpful if you 
don't have much experience 
running a business and want 
help. 
This short-term loan can 
give your bank account a 
boost while you secure 
more funding, or if there's 
a set period of time — say 
90 days — until your 
funding deal closes. 
WARNING 
Be prepared for hefty fees & 
interest rates to compensate for 
the high-risk nature of the loan. 
WARNING 
Many also offer investment capital & 
support staff to help with finance, 
marketing, sales, & strategy, plus 
established networks of experts 
to help guide major decisions. 
Incubators provide 
DON'T ask anyone to lend you money they can't 
afford to lose. And make it legal, so everyone 
knows exactly what they're in for. (Will you owe 
interest? Do they want equity? When do they 
expect to be repaid?) 
Since they stand to lose 
their entire investment, 
Angels like a “sure thing," 
often opting for 
opportunities that will net 
a major return very 
quickly. Possible IPO or 
acquisition within 5 years 
is most attractive to 
Angels. 
WARNING 
Because they have a vested interest 
in your success, Incubator staff want 
to be involved in decisions. And 
there's always the possibility they'll be 
at odds with your vision. 
Personal Savings 
Traditional crowdfunding Equity crowdfunding 
Venture Capitalists 
Bank loans 
WARNING 
If they have a stake, they'll want a 
say. VCs may want to add a 
member of their own team to your 
upper management, or approve 
any major business decisions you 
make. 
phones 
mailboxes 
conference 
rooms, etc. 
xxx 
xxx 
xxx 
xxx 
Instead of contributing for 
products or T-shirts, backers 
donate in exchange for a 
stake in your company. 
And when it comes to 
convincing potential future 
investors, you'll already have 
proof yours is a viable 
market solution. 
office space 
WANT TO LEARN MORE? 
Find out how some of the most successful 
startups in history got funded: 
bit.ly/StartupFundingSuccess 
Brought to you by SOURCES: 
Award-winning collaboration and project 
management software Wrike.com 
Businessweek.com, Blog.eladgil.com, Dashes.com, 
Entrepreneur.com, Entrerev.com, Forbes.com, Fundable.com, 
Mergersandinquisitions.com, Mytopbusinessideas.com, Inc.com, 
Investopedia.com, Startupdonut.co.uk, Wikipedia.org.

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7 Ways to Fund Your Startup (Infographic)

  • 1. 7 WWAAYYSS WAYS TTOO TO SSTTAARRTTUUPP FFUUNNDD WAYS YYOOUURR TO Bootstrapping Tap into personal savings, borrow from your 401(K), or keep your day job and use part of your paycheck to bankroll your startup until you can secure outside funding. WARNING Don't take it all. Keep an emergency fund in case a client doesn't pay on time, a pipe bursts and destroys equipment, etc. Raise money without giving up equity. Crowdfunding WARNING Don't get swept up in success stories. Unlike the Pebble Watch, most campaigns do not make 500x their fundraising goal. And because preparing & executing a campaign takes months, it can slow your timeline. xxx xxx xxx SEED FUNDING figure out your product and target market. This early investment help fledgling companies develop products, research target markets, & start building a user base. Funding options include bootstrapping, friends and family, angel investors, and crowdfunding. WITHOUT IT, MOST VCs ARE WARY: If friends & family aren't confident enough in your idea to pony up cash, why should they? Credit cards Use credit cards to buy initial equipment and cover setup costs. You can buy some time & avoid interest charges by transferring the balance to other cards while you either wait for your first customers to pay, or secure additional funding. WARNING If you fail to get funding and can't pay off the debt in full, you're personally responsible for the balance — and the interest payments. WARNING You'll need a lawyer. There are a lot of regulation & legalities, and you'll need a private placement memorandum (PPM) for any offering you make. WARNING Bridge loan Crowdfunding is a great way to practice your pitch, get to know your audience, & tweak your product. Traditional Lenders You're ready to scale up but haven't been able to secure additional capital. Come to the bank prepared with a thorough understanding of your company's risks, a working business model, & a high credit score. Pitch to a large pool of potential investors, actively looking for new companies to back. Plus, platform posting requirements force you to have a viable business plan in place. Friends and Family It'll help cover the gap between when you'll run out of cash and your new funding kicks in. SERIES A FUNDING Scale your product & define your ideal business model. Your company has momentum & may be generating revenue, but isn't yet profitable. Series A funds growth, helping businesses extend their user base, scale geographically, or hire more staff. Angel Investors Incubators 38% of startups get funds from friends & family, 0.05% of startups get money from venture capitalists. WARNING Banks are lenders, not investors. Your business needs to be established enough to show a track record of steady revenue, so they can be confident in your ability to make payments. These accredited investors back companies in exchange for convertible bonds or ownership equity. They often band together in angel networks, pooling resources and providing advice to the companies they invest in. SERIES B FUNDING Scale Your Business. You have a good product/market fit & solid business model. Series B funds business growth to hire marketing & sales people, further scale your customer base (e.g. move internationally), or buy out a competitor. VCs invest initial or growth capital for equity. Many VC firms also have specialists on staff to provide expert guidance & ensure their investment pays off, which can be helpful if you don't have much experience running a business and want help. This short-term loan can give your bank account a boost while you secure more funding, or if there's a set period of time — say 90 days — until your funding deal closes. WARNING Be prepared for hefty fees & interest rates to compensate for the high-risk nature of the loan. WARNING Many also offer investment capital & support staff to help with finance, marketing, sales, & strategy, plus established networks of experts to help guide major decisions. Incubators provide DON'T ask anyone to lend you money they can't afford to lose. And make it legal, so everyone knows exactly what they're in for. (Will you owe interest? Do they want equity? When do they expect to be repaid?) Since they stand to lose their entire investment, Angels like a “sure thing," often opting for opportunities that will net a major return very quickly. Possible IPO or acquisition within 5 years is most attractive to Angels. WARNING Because they have a vested interest in your success, Incubator staff want to be involved in decisions. And there's always the possibility they'll be at odds with your vision. Personal Savings Traditional crowdfunding Equity crowdfunding Venture Capitalists Bank loans WARNING If they have a stake, they'll want a say. VCs may want to add a member of their own team to your upper management, or approve any major business decisions you make. phones mailboxes conference rooms, etc. xxx xxx xxx xxx Instead of contributing for products or T-shirts, backers donate in exchange for a stake in your company. And when it comes to convincing potential future investors, you'll already have proof yours is a viable market solution. office space WANT TO LEARN MORE? Find out how some of the most successful startups in history got funded: bit.ly/StartupFundingSuccess Brought to you by SOURCES: Award-winning collaboration and project management software Wrike.com Businessweek.com, Blog.eladgil.com, Dashes.com, Entrepreneur.com, Entrerev.com, Forbes.com, Fundable.com, Mergersandinquisitions.com, Mytopbusinessideas.com, Inc.com, Investopedia.com, Startupdonut.co.uk, Wikipedia.org.