What funding options are available beyond venture capital?

Alternative funding sources

Venture capital is one option, but many small businesses and startups use other sources that may be more appropriate depending on stage and goals.

Common alternatives:

• Bootstrapping: reinvesting revenue to grow organically
• Angel investors: early capital from individuals, often smaller checks than VC
• Bank loans or SBA loans: debt financing for predictable cash flow businesses
• Revenue-based financing: repay a percentage of revenue until a cap is reached
• Crowdfunding: pre-sales or community funding via platforms
• Grants and competitions: non-dilutive funding for specific industries

Choosing wisely

Match funding type to business model: SaaS and high-growth startups often seek equity capital, while cash-flow businesses may favor loans or revenue-based financing. Consider dilution, control, repayment terms, and investor support.

Practical steps

1. Assess how much capital you need and for what purpose.
2. Compare costs and timelines of each option.
3. Prepare financials and a clear plan for use of funds.

Closing thought

Diversify your fundraising approach and pick sources aligned with your milestones and appetite for dilution. Early-stage founders often combine bootstrapping with small angel rounds to preserve control.