Finding funds for a Start-up

Identifying the different funding options for a Start-up using Jigsaw

Activity
Problem
Step One: Grouping – Home Group
• Get into your group as we used in the last couple of weeks.
• Find a physical location for your group inside the hall.
• Discuss what problems will arise when you try to get funding for your
startup.
• Take only 15 minutes.
Step Two: Leader
• Appoint a Leader for your group.
• Take only 2 minutes.
Step Three: Identifying the Sources of Funding
• The following are some sources of funding available for business startups.
1. Small Business Loans
2. Bootstrapping
3. Family Members
4. Credit Cards
5. Business Incubators
6. Angel Investors
7. Venture Capital Investors
8. Mortgages
9. Bank Loans
10. Government Grants
11. Crowdfunding sites
12. Life Insurance Policies
13. Business Overdrafts
• Small Business Loans – Getting a loan from a financial entity which is not a
bank.

• Bootstrapping – Using only existing resources

• Family Members

• Credit Cards

• Business Incubators - - Organization that helps startup companies and

individual entrepreneurs to develop their businesses by providing a fullscale
range of services starting with management training and office space and
ending with venture capital financing. (Hatch, SLINTEC, Yarl IT Hub)
• Angel Investors - High-net-worth individuals who provides financial backing
for small startups or entrepreneurs, typically in exchange for ownership
equity in the company

• Venture Capital Investors - A venture capitalist may provide resources to an

entrepreneur because the former believes that the latter can come up with a
great business idea.

• Mortgages

• Bank Loans
• Government Grants

• Crowdfunding sites - Raise funds from a number of small contributions from

many individual investors or purchasers usually in exchange of equity of the
company. Large number of individuals

• Life Insurance Policies - If you fail, you have the insurance

• Business Overdrafts - When your balance hits zero, you can carry on making
payments up to the limit set with your bank, known as the facility.
Step Four: Divide the Sources of Funding
Distribute the sources of funding among the group members so that everyone focuses on
one source.

1. Small Business Loans

2. Bootstrapping
3. Family Members
4. Credit Cards
5. Business Incubators
6. Angel Investors
7. Venture Capital Investors
8. Mortgages
9. Bank Loans
10. Government Grants
11. Crowdfunding sites
12. Life Insurance Policies
13. Business Overdrafts

Take only 3 minutes.

Step Five: Get Familiar with your Component
• Take 10 minutes and get familiar with your content individually.
Step Six: Expert Group
• Similar sources from each group form one expert group.
• Discuss about the selected component within the group.
• Some Points to discuss:
• Pros and Cons of the option
• How hard it is to get that option
• Basic requirements
• Where it is most suitable for
• Take 30 minutes.
Step Seven: Home Group Again
• Move back to your Home Group.
• Discuss your findings.
• Analyse your solutions.
• Take only 30 minutes.
Step Eight: Findings
• What is your finding on the best source/s of funding for your startup?

• Draft your answer as a Mind Map