Three Ways to Get Alternative Financing for Your Business

Once ideas are put on the table, one of the most difficult steps for the entrepreneur is undoubtedly to get the funding to make them come true. We must reflect on the options offered by the market. But traditional ways are not always the best. Investment-angel, crowdfunding, and venture capital, for example, are interesting alternative ways and are already among the models most sought by startup businesses.

We have listed below details of how it is possible to raise capital through these means:

Angel Investor

Investors in this segment are specialized in choosing and supporting certain projects when they are still early and are generally considered risky. The angel acts in search of market trends and closely follows the evolution of business, through a corporate contract. The so-called seed capital is placed in the initial phase of the business.

In this type of investment, what is sought is innovative companies. Before placing bets, investors analyze the team involved, the proposed product or service, and whether the market is ready to absorb this business model.

It is important to emphasize that the angel, more than an investor, ends up acting as a kind of mentor because he usually brings not only capital but also his experience.

Venture Capital

Here the investment happens in companies already established, but that is of small or medium size and present potential for growth. The focus remains on innovative companies capable of promoting relevant impacts. The selection process is similar to angel-investors: presentation, analysis, and negotiation. In private equity cases, companies that receive capital already have a fat bill, and the purpose is to propel the company into entering the stock market, for example. Usually, the contribution is from one company to another company.


Better known as a collective investment, it is like the famous kitty. The entrepreneur can insert his project in a specialized platform to make his idea feasible from donations. Some of these platforms can offer marketing support. People who put money can ask for a counterpart or not.


Some top platforms set up competitions for startups to compete for the attention of the media and investors. This means of fundraising can help a startup business thrive especially if the business idea is golden. This will attract more people to want to invest in the business idea. This is one of the methods used by startup here Toronto company funding to help fund startups.