Non-Traditional Funding

Startups may also pursue funding from non-traditional sources. Some examples of these are:

• Government grants – Certain research grants are available through programs such as SBIR/STTR (Small Business Innovation Research and Small Business Technology Transfer – http://www.sbir.gov/) or the Department of Energy (https://arpa-e-foa.energy.gov/).

• Banks – Banks do not usually participate in equity investments in new companies, but they are a source of loans, particularly for capital purchases when there is some kind of collateral (such as large equipment).

• Crowdfunding – Various companies enable entrepreneurial fund-raising by pooling small investments from a network of individuals.

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