Startup capital is the money you raise to get your business off the ground. With a bit of funding at the right stage of development, you can go from ideas to a thriving business that employs a bunch of people. You have a lot of choices when you’re looking for money to get off the ground.
Capital to start your business can come from almost anywhere, but most entrepreneurs borrow it. So-called debt financing can be a loan you take out to start your operations or to develop a prototype of your invention. You borrow the cash you need, and then make payments plus interest until a set term expires. When you pay off the loan, you aren’t in debt anymore and can keep your profits. Bond issues operate in much the same way. These are often done by existing companies that want to expand into a new product or market but don’t have the money on hand to pay the up-front costs.