Types of Financing and Sources of Funding

Angel investing is when a wealthy individual investor provides capital to a startup business. This type of financing is usually provided in exchange for a share of ownership in the business. This can be a great source of funding for startups because they usually provide more capital than family or friends and typically don’t require the same level of involvement as venture capital firms.

For this kind of financing to be accessible for an entrepreneur it is usually necessary to build and maintain strong networks and to invest into relationships and the public persona of the entrepreneur. Being visible through public engagements and social media activities can help finding an angel investor.