Types of Funding Options

1. Angel Investors

• Angel investors are individuals who use their own money to invest in startups in exchange for equity (ownership). They often provide mentorship and guidance alongside funding.
• Who Is This For? Early-stage startups or businesses needing funding and strategic support.
• Examples: Tech Coast Angels (TCA)
• Full URL: https://www.techcoastangels.com/
• Focus: Early-stage companies in industries like technology, fintech, and healthcare.
• Dilution: Yes, equity is exchanged for funding.

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Golden Seeds

• Full URL: https://www.goldenseeds.com/
• Focus: Startups with at least one woman in a management role, across sectors like consumer products and life sciences.
• Dilution: Yes.

Angel Capital Association (ACA)

• Full URL: https://www.angelcapitalassociation.org/
• The ACA provides tools and connections for entrepreneurs to find angel investors in their region.
• Dilution: Yes.

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2. Venture Capitalists (VCs)

VCs provide significant funding to startups with high growth potential, often in exchange for equity. They may also take an active role in company decisions.

• Who Is This For? Businesses with scalable models and strong potential for high returns.

Examples:

Y Combinator

• Full URL: https://www.ycombinator.com/
• Focus: Early-stage startups across various sectors.
• Dilution: Yes.

Sequoia Capital’s Scout Program

• Full URL: https://www.sequoiacap.com/
• Focus: Funding innovative early-stage startups through a network of scouts.
• Dilution: Yes.

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3. Crowdfunding Platforms

Crowdfunding platforms allow you to raise funds from many individuals, often without giving up equity. These platforms can be rewards-based, equity-based, or donation-based.

• Who Is This For?
• Startups and businesses with compelling ideas or stories.

Examples:

Kickstarter

• Full URL: https://www.kickstarter.com/
• Focus: Creative projects and product-based startups.
• Dilution: No.

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SeedInvest

• Full URL: https://www.seedinvest.com/
• Focus: Equity crowdfunding for startups.
• Dilution: Yes.

MainVest

• Full URL: https://mainvest.com/
• Focus: Local businesses like restaurants and retail.
• Dilution: No.

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4. Small Business Investment Companies (SBICs)

SBICs are private investment funds licensed and regulated by the Small Business Administration (SBA). These funds provide loans or equity investments to small businesses.

• Who Is This For?
• Traditional small businesses seeking capital for growth or expansion.

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• SBIC Directory
• Full URL: https://www.sba.gov/funding-programs/investment-capital/small-business-investment-company-sbic
• A comprehensive directory of licensed SBICs for entrepreneurs seeking capital.
• SBIA - Small Business Investor Alliance
• Full URL: https://www.sbia.org/
• Represents SBICs and private investors, offering insights and networking opportunities.
• Dilution: Sometimes.

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CDFIs provide affordable financing and development services to underserved communities. They are a network of financial institutions certified by the U.S. Treasury Department.

Who Is This For?

Small businesses and entrepreneurs in underserved or rural areas needing loans, microloans, or mentorship.

Examples & Resources:

CDFI Fund - U.S. Department of Treasury

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• Full URL: https://www.cdfifund.gov/
• Provides tools to locate certified CDFIs by location and learn about grants and programs.
• Opportunity Finance Network
• Full URL: https://www.ofn.org/
• A national network of CDFIs offering tools, funding options, and mentorship.
• Dilution: No.

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6. Government Grants and SBA Loans

• Grants provide non-repayable funding, while SBA loans are government-backed and offer low interest rates for small businesses.
• Who Is This For?
• Businesses needing capital without giving up equity.
• Examples:
• SBA 7(a) Loan Program

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• Full URL: https://www.sba.gov/funding-programs/loans
• Focus: General working capital for small businesses.
• Dilution: No.
• USDA Business & Industry Loan Guarantees
• Full URL: https://www.rd.usda.gov/programs-services/business-programs/business-industry-loan-guarantees
• Focus: Rural businesses needing capital for expansion.
• Dilution: No.

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7. Impact Investors

• Impact investors fund businesses that drive positive social or environmental change.
• Who Is This For?
• Businesses with missions to improve their communities or the planet.
• Examples:
• RSF Social Finance
• Full URL: https://rsfsocialfinance.org/

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• Focus: Food, education, and social enterprises.
• Dilution: Sometimes.
• New Media Ventures
• Full URL: https://newmediaventures.org/
• Focus: Local and social impact-focused startups.
• Dilution: Sometimes.

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8. Microloans

• Microloans are small loans (usually under $50,000) for businesses needing smaller amounts of capital to get started.
• Who Is This For?
• Startups and small businesses with limited capital needs.
• Examples:
• Kiva
• Full URL: https://www.kiva.org/

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• Kiva
• Full URL: https://www.kiva.org/
• Focus: Crowdfunded microloans.
• Dilution: No.
• Grameen America
• Full URL: https://www.grameenamerica.org/
• Focus: Loans for women-owned businesses.
• Dilution: No.

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• Focus: Franchise financing solutions.
• Dilution: No.
• Benetrends Financial
• Full URL: https://www.benetrends.com/
• Focus: Franchise and small business funding.
• Dilution: No.