5 Funding Sources For a Startup


Most startups don’t fail because they were a bad idea. They ran out of capital, that’s why they fail. So, here are five funding sources that every startup should look for.

First, boost trust of yourself. Use your own revenue and those of your partners and look at short term revenue streams that can help you get started. FedEx actually went and took his money, of [Fred Smith], to Vegas. I wouldn’t recommend it but that’s how FedEx got started.

Secondly, go to family and friends. If you don’t have any friends or family that will believe you and your idea, no stranger is going to invest with you.

Third, look at vendors that are in your field. If you can get a vendor or supplier and show that you can increase their business, they’ll invest with you. Ray crafted this with [meat packers] and that’s how they got the funding for McDonald’s.

Fourth is grant. The US Government has many, many grant funds for a lot of different initiatives that can help you get started. And grants are money that you don’t have to pay back nor share any equity.

And fifth and the last on the list are venture capital firms. Many people first but they wouldn’t go in deal with you unless you’ve gone through this other steps. ‘Cause they want to see that you have some attractions and other people do believe.

So, go through this list to eccentric circles and ending up with the venture capital fund and you’ll end up fully funded.

Jay Samit is the CEO of Social Vibe ( In this video he discusses five funding sources for a startup.

  1. Use your own revenue
  2. Ask family & friends
  3. Incorporate vendors
  4. Apply for grants
  5. Venture Capital Firms