There is no doubt that money is an indispensable element for starting and running a business. But, do you know that there are different types of funding apt for different phases of business growth?

Let’s explore the different types of business funding.

Pre-Seed Funding

It is best suited for startups in their earliest stages and is mostly sourced from the founders, family, and friends. 

Seed Funding

It is the first formal round of funding used to back early-stage development for gaining initial traction. 

Series Funding

• Series A Funding

Startups that endeavor to expand or scale their operations and refine their business model go for it.

• Series B Funding

It is usually pursued by established, growth-proven companies that have validated a successful model. It supports major growth initiatives like enhancing market penetration, scaling up further, and increasing operational capacity.

• Series C Funding

This is specifically relevant for businesses striving for large-scale growth, major expansions, or making acquisitions. 

• Series D and beyond

Companies that aim to launch IPOs, undertake international expansion, or strategic acquisitions go for it to gain access to substantial capital.

Debt Funding

• Venture Debt

This funding caters to fast-growing ventures and booming startups. It can be coupled with equity support for additional capital. Also, it mandates repayment irrespective of the financial performance of the company

• SBA Loan

These are small business administration-guaranteed loans with preferential terms for small businesses with less credit history.

• Asset Loan

It accommodates companies with ample asset holdings, for acquiring more capital and comes with a risk of potential loss of assets if the company fails to fulfill repayment obligations.

• AR Line

It caters to businesses with outstanding or significant accounts receivable and ensures immediate cash availability.

Equity funding

• Crowdfunding 

Crowdfunding is typically preferred by startups and small businesses for securing minor financial support from a vast pool of people often through internet platforms. Usually, there is no need for equity or debt, however, it calls for huge marketing efforts.

• Angel investors

To gain initial capital, startups in their early phase rely on high-net-worth individuals also known as angel investors. They offer personalized support while investing in the emerging startup in return for a percentage of equity.

• Venture capital

Certain private companies also called venture capital firms specifically focus on funding early-stage companies, for a stake in the company.

Choosing the right funding option in alignment with your business objectives can significantly shape your success and growth trajectory. So, how can you choose the right funding option for your business? 

To decide on that consider the following aspects.

• The stage of your business
• Your industry
• Your business funding needs and goals
• The degree of control you can sacrifice for the future growth of your business
• The level of financial risk you are prepared to handle

Apart from selecting the appropriate funding type, it is also important to find suitable investors, taking their interest rates into account while evaluating the risks involved in each and every choice.

However, finding the best investors for your business can be quite challenging, intimidating, and exhausting. We at DhuMall help businesses all over the world discover potential investors with our highly trusted business funding solutions. We aim to offer our client companies a reliable service focused on helping them achieve growth, prosperity, and success.  

We support our clients with our robust and comprehensive network and collaboration with more than 78,000 public listed companies, investment funds, private equity funds, venture capitalists, angel investors, business incubators, government agencies, various funds, and investors, around the world.

Our team of experts, which incorporates professionals who have in-depth knowledge, great proficiency, and profound experience in the field, will collaborate with you to comprehend the unique challenges and funding requirements of your business, to connect you with appropriate investors. 

During the entire process of securing funds for your business, these experts will back you up with clear and personalized advice and guidance for preparing a robust and compelling pitching deck, that includes all your business information that investors expect to know before approving the fund. This will help in averting those mistakes that can lead to the rejection of your business fund application.

By leveraging our robust global network of investors and excellent expertise in this field, we not only help you craft and deliver compelling pitches but also secure outstanding offers with optimal terms and competitive interest rates.

We deliver our friendly, trustworthy, responsible, and transparent service to businesses that seek the following funding rounds:

•    Seed
•   Angel Round
•   Series A
•   Series B
•   Series C And Beyond
•   Merger & Acquisition
•   IPO
•   Post-IPO
•   Private Placement
•   Other Funding

Trust DhuMall Business Funding Solutions for reliable, quick, and hassle-free financial support for your business