6 Sources of Alternative Startup Funding

So many potentially groundbreaking businesses end up being only ideas due to the lack of entrepreneurship knowledge and the lack of finances. One can acquire knowledge by getting a degree at a university or by self-study. As to the latter, must-read collections like “Articles on Small Business and Entrepreneurship” by Daniela Bucatele can help greatly. But no collection will give you additional money to actually start your company. Concerning the money issue, there are at least 5 ways out.

5 Ways Out of Financial Hardships: Alternative Startup Funding

Angel Investors

These are the people who give their money to promising young companies in exchange for a 20-25% return. In most cases, angel investors are good strategists, so they may help by providing not only the money, but some tactical benefit as well.

Venture Capitalists

This option is only for those companies that have the potential for both fast growth and high risk. Such investors usually help startups in certain fields, and in addition to the finances, they provide their clients with consultations on whether their projects/goods/products/services will become successful. If not, they may also give an advice on how to improve the situation. However, venture capitalists aren’t very loyal when it comes to paying them back.

Online Lending

Also called “peer-to-peer lending”, this is an innovative way to invest/get money for your project. You can apply for a loan in an hour by setting up a profile of your company and get the necessary sum in several days. Of course, it depends on the volume of your startup funding, but eventually the goal will be achieved.

The system is becoming very popular among both potential investors and entrepreneurs who need a loan. According to analysts, such a rapid popularity growth will lead to the increase of the overall amount of money given for loans this way to $150-$490 billion in just two years from now.


There are many websites you can apply to in order to raise your starting capital. All you have to do is choose the right service, write a catchy introduction for your business, and promote your goal to reach more people. Little by little, the money will start flowing from those who find your business/goal useful or relatable.

Be careful when choosing a service, as many of them have nasty fees for withdrawing the money or performing other actions with the funds you raise.


The government or private organizations give out grands to those young companies that follow a certain goal. To get funded by the government, your startup needs to be connected to research or science. Besides, it has to meet all the requirements towards the research-and-development goals. It may be easier to do in case of a private company grant, or more difficult when it comes to international benefactors.

You can try one or all of these options to get a sufficient capital for your company to get off the ground. However, remember about your funders as you thrive, as they will come back for their interest.