There are several types of public funding available for innovative start-up businesses. Determining which type of public funding is right for your start-up depends your business and your future goals. You’ll need to analyse all aspects of any funding opportunity to ensure that it meets your needs.
Equity financing
Equity financing requires you to surrender part of your business ownership in return for cash. This includes surrendering part of future profits.
Equity financing covers a wide range of activities, from raising money from family and friends to an initial public offering (IPO), when the stock of a private company is offered to the public for the first time.
Equity financing sources include:
Loans
Whether from a bank or an alternative loan provider, loans must be repaid, and some lenders require security.
Alternative loan sources include:
Crowdfunding
Crowdfunding, a form of alternative finance, is a way of funding a business or project by raising money from a large number of people.
Types of crowdfunding include:
Whatever form of public funding is right for your innovative start-up business, don’t forget that you can also make one R&D Tax Relief Claim per year. A specialist R&D Tax Relief consultant will help you analyse, prepare, optimise, and then submit your R&D Tax Relief claim to HMRC.
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