One of the major challenges that startup businesses have, and one of the most commonly raised questions, is how to find funding for these fledglings. Research shows that in the UK only one in ten startup companies do not require outside funding, leaving 90% of startup founders left trying to find ways to get financing. The figures from elsewhere in the world are similar, and traditional lenders such as banks can be very cautious, making it difficult for new companies to gain access to funding for unproven concepts. Of course, bank loans are not the only option, but finding the best solution for each type of start up can be a real and relentless issue. Some financing options are available in certain countries and not others, and some funding options may be easier to obtain or more workable depending on your company’s industry, location, product, etc. Researching the most realistic options for your specific business is important before deciding on a route to go down. Here are some different options for businesses in the UK, Australia and Canada.

 

Innovate UK is the UK’s innovation agency. The remit of the organisation is to encourage innovation and business growth and to help eliminate risk. The organisation provides funding for those businesses that show themselves to offer the “strongest opportunities”. Its primary focus is on businesses that will operate in the field of science and technology. This is a worthwhile port of call for businesses in this sector. The organisation invites applications for funding for particular types of businesses (and it is quite specific about which types of firms can apply for which funding). Since 2007 it has committed more than £1.8 billion to partner and business funding. In the UK, Startups.co.uk is a good resource offering suggestions of how to gain access to Angel financing, venture capital, crowdfunding, loans, grants, peer lending and other options. Meanwhile Alternative Business Funding helps to match your business to a suitable financing option by asking a few questions.

Australia has different options that startup companies can consider. For example, Venture Crowd is a crowdfunding platform offering direct access funding to organisations that show promise, but there are also opportunities to gain access to alternative forms of financing too. Companies can submit pitches to the Angel Investment Network, which can also result in business funding. Equitise is a relatively recent startup that serves as an online equity crowdfunding platform, aiming to connect startups with high growth businesses. Australian startups could also consider applying to be part of an accelerator programme, such as those offered by muru-D or AngelCube, for example. On the other hand, the National Innovation and Science Agenda in Australia through the CSIRO Innovation Fund helps startups make progress through offering finance for early stage innovations.

 

In Canada, the options are different again. For example, Startup Canada describes itself as a “grassroots network of entrepreneurs working together to build an environment for entrepreneurship in Canada.” It provides information on a range of different funds that can help startups that are developing high-impact, community-driven initiatives in Canada. The Canada Business Network provides a range of different financing suggestions as well. Some of the opportunities include public funds to get business ventures underway, as well as options like wage subsidies and loan guarantees from the government.

 

Fundsquire can also help you to find ways to finance your business that are best suited to your specific needs. Contact us today to find out how we can help.