Startup Funding - Sources and Sequence
Over 90% of successful tech companies are financed in pretty much the same way:
- Startup funding from Friends and Family investors, then
- Angel Investors and Angel Funds, followed by either
- Venture Capital, or
- Public Venture Capital
There are also a variety of government programs that provide financing to companies doing research and development. The largest are the SRED and IRAP programs.
At the later stages of an organization's life cycle there is also the remote possibility of obtaining financing from private equity funds and strategic investors.