There are several sources through which startup businesses can secure funding in the UK and streamline their business:
Angel Investors for Startup
Angel investors are individuals with significant wealth who provide funding to startups in return for a share of ownership in the company. Angel investors are experienced entrepreneurs themselves and can offer valuable guidance and support to startups. This funding is often used during seed funding for startups and ranges from £25,000 to £500,000.
These firms are professional investors who offer to fund startups in return for equity in the business. Venture capital firms are interested in startups with the potential for high growth and a strong return on investment. Demonstrating a product-market fit is crucial in convincing these firms to invest in your business, as they may be hesitant otherwise.
This entails raising funds from a large number of people through online platforms. Crowdfunding can be a useful way for entrepreneurs to validate their business idea and build a community of supporters around their business.
Bank Loans for Business
Bank loans are a usual form of debt financing for startups. Banks offer loans with varying interest rates, collateral requirements, and repayment terms. Bank loans can range from £5,000 to £500,000 and are often used to cover startup costs or for expansion and growth.
Grants are funds that do not need to be repaid and are often provided by government or non-profit organisations to support specific types of businesses and projects. Startups can access different types of grants, such as the Innovate UK Smart Grant, which is a grant supported by the UK government specifically designed to fund innovative ideas.
These organisations offer support to startup businesses, including office space, mentoring, and access to funding. In the UK, some well-known business incubators include Entrepreneurial Spark and The Biosphere.
Government Loans & Schemes
The UK government offers various schemes and loans to support startups, including the Seed Enterprise Investment Scheme, which offers tax incentives to investors and the Startup Loan Scheme.