#38 — Best funding options for startups (2025)

Why it matters: Startup capital isn't one-size-fits-all. Your funding strategy (and your choices) can make or break your company's trajectory.§

The Capital Stack

BOOTSTRAPPING
Self-funding remains the dominant first move for most founders. You maintain 100% control but face growth limitations. Most founders we track start here before pursuing external capital.§

GRANTS
Non-dilutive capital targeted at specific founder profiles or industries. No equity sacrifice required.§

• Where to find them: Grants.gov (US), Innovate UK (UK), NRC IRAP (CAN)
• Reality check: Highly competitive but worth pursuing alongside other funding streams

ANGEL INVESTORS
High-net-worth individuals writing personal checks in exchange for equity. Beyond capital, they often provide strategic guidance and network access.§

• Access point: AngelList and similar platforms
• Insider note: Angels typically move faster than institutional capital

VENTURE CAPITAL
The high-stakes, high-reward funding path for startups with massive scaling potential.§

• The truth: Expect hundreds of rejections before landing a term sheet
• Power dynamic: Requires significant equity sacrifice and growth commitments

CROWDFUNDING
Direct-to-consumer capital raising through platforms like Kickstarter or equity-based alternatives like SeedInvest.§

• Evolution: Increasingly viable for software and service businesses, not just physical products
• Hidden benefit: Simultaneously validates market demand while raising capital

DEBT FINANCING
Traditional loans that preserve equity but create repayment obligations regardless of business performance.§

• Warning: Often a last resort that can constrain early-stage growth potential

Finding Your Money

FUNDING INTELLIGENCE PLATFORMS
Crunchbase, AngelList, F6S, and Gust provide comprehensive investor research capabilities.§

GRANT ECOSYSTEMS
Beyond government portals, demographic-specific opportunities exist through organizations like Business Development Bank of Canada (CAN) and WomensNet (US).§

ACCELERATOR LANDSCAPE
Y Combinator, Techstars, and 500 Startups offer funding plus structural advantages through mentorship and network effects.§

EXCLUSIVE SOURCE
The hillock. newsletter (free) curates opportunities with lower competition profiles, including micro-grants with recurring application windows.§

Pitch Preparation Playbook

DECK FUNDAMENTALS
Your funding route determines required components, but all successful decks articulate vision, market opportunity, financial projections, and team capabilities.§

FINANCIAL COMMAND
Investors expect granular understanding of unit economics, growth levers, and specific use of proceeds plans.§

NARRATIVE CONSTRUCTION
The most compelling pitches transcend features to articulate why your solution matters and how it transforms user experiences.§

INVESTOR TARGETING
Research previous investments to ensure alignment. Generic outreach dramatically reduces response rates.§

Fatal Funding Errors

PREPARATION GAPS
Walking in without comprehensive materials and metrics kills credibility instantly.§

MISALIGNED OUTREACH
Focus exclusively on investors with domain expertise who can champion your vision internally.§

RELATIONSHIP NEGLECT
Secure direct contact information and maintain consistent follow-up cadence.§

FEEDBACK FAILURE
Every "no" contains valuable intelligence. Aggressively pursue constructive criticism to refine your approach.§