How do I fund the growth of my business?

Growth requires capital to invest in people, property, plant, equipment, systems and other resources. Getting this capital is not easy, particularly in the current credit-constrained conditions.  

 

The main options to fund growth are:
 

  • A loan from a bank or finance company. The traditional form of funding for a growing business.
  • Angel investment. So-called business angels are entrepreneurs or former entrepreneurs who like to invest in growing companies, in returning for receiving a stake in the business.
  • Venture capital. Venture capital funds invest in early-stage companies and hunt for big returns over a period of about five years.
  • Private equity. Private equity funds invest in growth businesses that have been operating for a few years and are looking for capital to go to the next level. Will also look for an exit in three to five years.
  • Government grants. Federal, state and even local governments provide various grants to help companies develop new products, exports and conduct research and development.

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