Types of Funding

Banks offer traditional forms of funding such as overdrafts and loans. Other options include angel investors and venture capitalists who fund business privately. You may also be able to benefit from government loans.

Where to Get the Cash
The critical elements in building a new business include: the right opportunity, market research, a business model and a business plan. But to take an idea forward, you need capital.

Angel Investors
Angel investors are wealthy individuals seeking to invest their own money in early stage companies.

Bank Financing
The risk preference of most banks is such that it is difficult for them to provide capital to businesses with no operating record.

Government Funding & Grants
Government grants and loan programmes have been set up by the government to extend funding to previously disadvantaged South African to foster black economic development.

Venture Capital Private Equity Funding
Equity financing is a method of financing in which a company issues shares of its stock and receives money in return. Depending on how you raise equity capital, you may relinquish anywhere from 25 to 75 percent of the business.

Venture Capital Funding
Venture capitalists are a group of investors operating in a partnership to make and manage investments in young, early stage companies.

SA Funding Success Stories
The stories of three South African start-up businesses that pursued different funding routes to launch their companies.