There are a wide variety of funding options for startups. These range from loans, angel investors, venture capitalists, crowdfunding to grants.
Loans: They are the most common form of startup funding. Loans are available in the form of bank loans or peer-to-peer lending. Banks and other financial institutions offer loans to startups as they know that they can get their money back with interest and it is less risky than lending to an individual.
Angel investors: They invest in startups at the seed stage of growth and provide them with money in exchange for equity stakes in the company. Angel investors help startups by providing them with funds that allow them to grow further without worrying about cash flow problems.
Venture capitalists: Venture capitalists invest in startups at a later stage than angel investors do, typically after an initial investment has been made by an angel investor or group of angel investors who have determined that there is potential for success. Venture capitalists invest large amounts of capital into companies because they expect a large return on investment.
Venture capital funds: Venture Capital funds are made up of investors, who pool their money together and invest in start-ups. A fund typically holds between 30 and 300 million dollars.