In most cases, startup capital is key for the success of a small business startup. As we have demonstrated in previous blog posts, there are many financing options available to entrepreneurs when raising funds. The type of funding a startup should pursue varies from company to company and depends on what stage the company is in.
The info-graphic below identifies the various types of funding available to entrepreneurs as well as a timeline for when entrepreneurs generally seek out each type. The infographic also provides fundraising trends and examples of well known companies,primarily in regard to funds that come from venture capital (VC) and initial public offerings (IPO).
The financial section of any startup business plan should include a fundraising strategy that details the various types of funds the company will pursue as well as the timeline and amount to be raised from each source.