There are multiple sources of money that support creation of new businesses. Not all may apply to your situation, but the words and phrases are well rehearsed in the money space.
Money free of Equity
FREE MONEY: money is received, but no ownership (stock) is given up
GRANTS: Money derived from pseudo-government orgs – often, application-driven
PRIZES: Money awarded thru a competition. Often with media coverage/PR.
BOOTSTRAPPING: No outside money. Company grows thru its own revenues or entrepreneurs’ savings.
Sources of Money
FRIENDS, FAMILY & FOOLS: Money invested for at least partly emotional reasons
SOLO ANGELS: Money invested by accredited individuals to make a profit. Invest their own money at
early, seed stage. Often, want to stay involved and/or mentor.
ANGEL NETWORKS/GROUPS: Angels who come together to pool money, experience and networks.
VENTURE CAPITAL: Professionals who invest other people’s money. Can be early or later stage.
CORPORATE VENTURE CAPITAL: VC invested by large businesses to make a profit but also often interested in strategic partnerships, maybe future acquisition.
IMPACT INVESTMENTS: Money invested to make some profit but also for some “mission-driven” goal like helping communities. Often early stage.
CO-INVESTMENTS: Money invested by governments or universities to boost other investments
ACCELERATORS: Money invested by intense, short-term mentor-driven programs in exchange for stock.
TAX INCENTIVES: to relocate to unpopular areas.
MATCHING FUNDS: to donate bonus money if other money is successfully raised .
SUBSIDIES: to reduce or defer taxes.
LOW-INTEREST LOANS: Programs such as Iowa’s various programs that allocate small investments in form of low-interest, long-term loans