Capital is the lifeblood of any growing business. Whether you are a startup issuing convertible notes or raising a seed or Series A round, or an established business taking out a bank loan or issuing promissory notes, obtaining the resources you need is critical. From understanding the terms to protecting yourself in case things don’t go as planned, an experienced Legal Hero lawyer can help you successfully navigate the fundraising and investment process.
What are some of the common sources of investment for startups?
While some startups are self-funded, which is known as bootstrapping, when a startup raises money from investors it can choose from several different types of investments, including convertible notes, common stock, and preferred stock. There also a wide variety of potential sources of investment, with the options depending on the company’s stage of development and the amount of money it is seeking. Some of the common investment sources include:
friends and family
venture capital firms
private equity firms
and many others
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