Start-Up 101: How Can We Finance Our Idea?

For start-ups, securing investment is just as crucial as coming up with an idea and developing a product or service. Start-ups naturally require investment to bring a project to life and foster its growth. 

In this article, we will briefly explain the financing methods that start-ups can use to secure investment. Nowadays, the following models are commonly preferred for start-ups to access financing from investors:

• Raising capital through equity injection (“Capital Increase”),
  
  
• Raising financing through convertible loan/bond (“Convertible Loan/Bond”),
  
  
• Financing through equity-like investment instruments such as Simple Agreement for Future Equity (“SAFE“), Advanced Subscription Agreement (“ASA“), Keep it Simple Security (“KISS“), Easy Prepayment on Shares (“EPOS“), commonly used in countries like the United States, the United Kingdom, and the Netherlands (“Equity-like Investment Instruments“) and