What are startup funding options?
Startup funding options are the different sources of money a new company can use to start and grow. They fall into two groups. Dilutive funding, like angel and venture investment, gives investors a share of the company. Non-dilutive funding, like revenue, grants and loans, doesn't.
No option is best in general. The right one depends on how fast you need to grow, how much money that takes, and how much ownership and control you're willing to give up.
The main types of startup funding
Bootstrapping
Funding the company from savings and revenue. You keep full ownership, but growth is limited by cash flow.
Friends and family
Early money from people who know you. Quick and flexible, but put the terms in writing to protect the relationships.
Grants and competitions
Non-dilutive money from governments, foundations and prize competitions. Applications take time, and funds often come with reporting requirements.
Angel investors
Individuals investing their own money at pre-seed and seed, usually in exchange for equity or a SAFE.
Accelerators
A small investment for equity, plus mentoring, a network and a demo day.
Venture capital
Larger rounds from funds that expect very high growth. Brings money and support, but also board seats and pressure to scale.
Debt and revenue-based financing
Loans or repayments tied to revenue. No dilution, but you need predictable income to repay.
Crowdfunding
Many small contributions, either as pre-orders (rewards) or as equity. Doubles as marketing and demand validation.
Funding options compared by stage
| Option | Typical stage | Gives up equity? | Speed |
|---|---|---|---|
| Bootstrapping | Any | No | Immediate |
| Friends and family | Idea, pre-seed | Usually | Fast |
| Grants | Idea to early | No | Slow |
| Angels | Pre-seed, seed | Yes | Weeks to months |
| Accelerators | Pre-seed, seed | Yes, small stake | Tied to intake dates |
| Venture capital | Seed onwards | Yes | Months |
| Debt | Revenue-generating | No | Weeks |
| Crowdfunding | Product ready to show | Depends on type | Campaign length |
How to choose
- If you can reach profitability on revenue, bootstrapping keeps your options open
- If your market rewards speed and needs heavy upfront spend, equity funding fits better
- If you're doing research or working in a supported sector, check grants first
- If you have steady revenue and want to keep ownership, look at debt or revenue-based financing
- Many startups combine options, for example a grant alongside an angel round
How to plan your funding on Startupply
- 1
Work out how much you need
The AI Funding Calculator estimates your funding requirement from burn, hiring plans and runway, which tells you which options are realistic.
- 2
Find grants, competitions and programmes
Browse open calls, pitch competitions and accelerator intakes on the Startupply events page, and apply with your saved startup profile.
- 3
Find angels and VCs
Search investor profiles and message them directly. AI investor search on paid plans suggests matches for your stage and sector.
- 4
Check readiness before equity rounds
Use the Startup Readiness Index to see what investors will look for before you approach them.
Frequently asked questions
What is the easiest way to fund a startup?
Bootstrapping from savings or early revenue is the simplest, since nobody else has to say yes. For outside money, friends and family or a local angel are usually the quickest to close.
What is non-dilutive funding?
Money that doesn't require giving up ownership, such as revenue, grants, competition prizes and most loans.
Can I combine different funding options?
Yes, and many startups do. A grant can extend runway alongside an angel round, and revenue-based financing can fund growth between equity rounds.