There are several types of external funding, each with its own advantages and considerations:
Equity Financing: Involves selling a portion of the company's ownership to investors in exchange for capital. Common sources include venture capitalists and angel investors. Debt Financing: Involves borrowing money from lenders with the agreement to repay it with interest. This can be through bank loans, bonds, or credit lines. Crowdfunding: A modern approach where businesses raise small amounts of money from a large number of people, typically via online platforms. Grants and Subsidies: Non-repayable funds provided by government bodies or organizations for specific projects or initiatives.