How to Source Fund for a New Business?


Sourcing funds for a new business can be a challenging task, but there are several options available to you. Here are some ways to source funding for your new business:

Personal savings:

If you have savings, you can invest them in your new business. This is a good way to start as you won’t have to pay back any loans or give up equity in your business.

Friends and family:

You could also approach friends and family members who may be willing to invest in your business. Be sure to draw up a formal agreement to avoid misunderstandings.


Crowdfunding platforms like Kickstarter and Indiegogo allow you to raise funds from a large number of people in exchange for rewards or equity.

Small business loans:

You could apply for a small business loan from a bank or credit union. Be sure to have a solid business plan and financial projections in place before applying.

Angel investors:

Angel investors are wealthy individuals who invest in promising startups in exchange for equity. You can find angel investors through networking or by joining an angel investor group.

Venture capital:

Venture capital firms invest in startups with high growth potential in exchange for equity. They typically invest larger amounts of money than angel investors and may require a seat on your board of directors.


Remember, before you start seeking funding, it’s important to have a solid business plan in place that outlines your goals, target market, and financial projections. This will help you make a compelling case to potential investors.

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