How Entrepreneurs Can Raise Funds for Their Startup

According to research, 38% of startups fail in the UK each year because they run out of cash or fail to raise new capital.

Most businesses start off with an idea and that idea blossoms into a passion that motivates. However, passionate entrepreneurs don’t ensure business success. Start-ups require funding in order to thrive. Without raising adequate capital, it can be difficult to develop a successful business. 

Almost every entrepreneur finds themselves asking how they can finance their startup. Whether you choose to go down the investor route, the crowdfunding path, or whether you decide to raise the money yourself, there are many ways you can raise funds for your startup. Below are some of the best options for financing your startup. 

Ask for Help from Friends and Family 

Have you got any friends or relatives who would be willing to fund your startup? It is always worth approaching friends and family first when looking for people interested in funding your business. 

Asking friends and family for financial support is known as self-funding and is a very common method used by entrepreneurs keen to get their business off the ground. 

One of the benefits of seeking help from friends and family is: 

  • The funds are immediately available 
  • They are usually flexible when it comes to paying off your debts 
  • Negotiable interest rates 

If you choose to approach the right friends or family members, you may receive the funds you need to launch your business and give it the best possible chance of success. 

Car Equity Release

If you don’t have the support you want from friends or family, or if they simply don’t have the money to offer, you will need to seek other options for self-funding. And car equity release could be just what you need! 

Car equity release lets you take out a loan against your car, freeing up cash when you need it. The great thing about logbook loans is that you don’t need to surrender your car. says that as long as you pay the amount back within 18 to 60 months, you can keep using your car, borrow up to 70% of its value, and boost your cash reserves simultaneously. 

Car equity release is a great way to release the cash you need to get your startup off the ground. What’s more, you can negotiate those monthly repayments to ensure they work for your budget and not against it.  


We have all seen crowdfunding pages where people share their heart-felt stories in the hopes of gaining financial support. Crowdfunding has become an increasingly popular way for entrepreneurs to raise the funds they need for their startups. It’s open and available to everyone and perfect for promoting widely on social media. It basically allows you to accept donations from more than one person at a time. 

All you need to do is create a crowdfunding platform and share your story. Talk about why you want to start your business, your vision behind it, how you plan to grow your company and how much funding you need to make that happen. You can then share this information online for everyone to see and those who are interested in giving can do so. 

Some of the most popular crowdfunding sites include: 

  • Kickstarter
  • Go Fund Me
  • Crowdcube

Venture Capital Investment 

According to The Harvard Business Review, “more than 80% of the money invested by venture capitalists goes into building the infrastructure required to grow the business - in expense investments (manufacturing, marketing, and sales) and the balance sheet (providing fixed assets and working capital). 

Venture capitals are funds managed by experts that are then invested in companies with potential. They help provide the necessary funding to get a business off the ground. Put simply,  venture capitalists buy a stake in a startup, help nurture that startup, and once the business is successful, they exit. If your company has already been launched and is growing quickly, venture capital investment could be an excellent way to get that boost in funds you need. 

Apply for a Government Startup Loan 

The UK Government provides startup loans for entrepreneurs looking to launch their own business. Loans are available from £500 up to £25,000 and are an excellent way to start your business. 

What’s more, when you apply for a government startup loan you will receive free, professional business support with up to 12 months of free mentoring. Almost 2,000 businesses are started in the UK every single day. And thousands of these businesses each year are launched with the help of a government startup loan. 

If you want to launch your business, applying for a government loan might just be the best place to start. 

Final Words 

Starting a business can be a daunting time. Sure, it is full of excitement but it can also be full of worries. If you’ve been worrying about how to finance your business, we hope these tips have been helpful. There are so many financing options available. It’s all about finding the right fit for your business.