Finding startup funding can be a challenging process, but the right resources can help you achieve your business goals. From government grants to angel investors, the options for securing capital can seem endless. The type of funding you choose may affect the equity you retain in your company, so it’s important to understand your options before pursuing any investments.

Founders often turn to family and friends for seed funding. They can also look to angel investors, who are high net worth individuals willing to invest in a startup, usually in exchange for a stake or board seat in the company. This is especially common in B2C businesses with a product that resonates with a large audience.

Venture capitalists are another potential source of funding. They typically require significant due diligence before investing, including strong customer acquisition (CAC) metrics and a clear path to profitability. Investors expect a large return on their investment, so it’s critical to demonstrate that your startup has the growth potential to justify their risk.

Government and private foundation grants offer funding without requiring repayment or giving up equity, making them one of the most founder-friendly forms of startup funding. However, the application and selection process can be competitive and time-consuming. When seeking grant funding, focus on programs that align with your startup’s industry focus and business stage. This will allow you to tailor your pitch more effectively and improve your chances of receiving support. Additionally, consider leveraging consulting services to assist in your grant applications.