Financing is needed to start a business and ramp it up to profitability. There are several sources to
consider when looking for startup financing. But first, you need to consider how much money you
need and when you will need it.
The financial needs of a business will vary according to the type and size of the business. For example,
processing businesses are usually capital intensive, requiring large amounts. On the other hand, retail companies typically require less money. Whereas tech-enabled startups may require moderate to considerable investment.
Debt and equity are the two significant sources of financing. Equity financing could be in different forms: seed capital, angel investment, venture capital, private equity, and, eventually, IPO.