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1. Other Sources for Financing Your Business Startups
Aside from the common sources of income where would-
be entrepreneurs would first go for their business startups,
there are other resources which they can tap for
assistance. Here are some of them.
NGOs and Non-profit Organizations
NGOs and Non-profit organizations that help businesses
may not provide direct capital for startups, but they help
by linking you with private institutions and investors. Some
NGOs and non-profit organizations have created strong
relationships with big institutions and society’s elites. You
can use this to your advantage to raise the funds you
needed for business startups.
Venture Capitalists
Another option to raise financing for business startups is through the help of venture capitalists. You
might not want their help as they are strict and tough on their financing terms. Due to the tight rules of
venture capitalists, only few business startups have ever passed their test. However, if you passed their
requirements, these venture capitalists will give you the needed capital but they will ask you for equity
in return. They will provide help to ensure that startups will grow and survive for them to get their
investments back.
Banks
Commercial banks are other sources of funding for startups as they provide business loans but you need
to deposit collateral. Obtaining bank loans is a lesser applied technique to raise capital for business
startups due to the requirements and high rates of interest.
Entrepreneurial Associations and Networks
Similar to NGOs, entrepreneurial associations and networks do not provide capital directly to startups,
but link them with entrepreneurs and investors who might provide financing and provide help through
their experts in the field.
Customers
You can also raise funds from customers or clients by showing a product prototype and payment
collection before supplying. This technique may not help your business to explode but it can get your
business going.

2. Suppliers
This is the same in raising financial support from customers and clients. By applying similar techniques
on suppliers, you can have the needed capital for the business startups.
Investment Bankers
When these potential sources of capital were exhausted, the last avenue for you is to approach those
investment bankers. They can provide you the needed capital for business startups. They can raise funds
for the startups from the public. But you need to sacrifice ownership of the business as you need to sell
some of the stakes through an initial public offering (IPO).
Reverse merger is another way in raising funds for startups. The process involves merger and acquisition
with a public company.