There is a general assumption that you have to get all your funding requirement from one source of funding, and whilst sometimes this is true, often you will end up getting your funding from many different sources - what I call a “cocktail of funding”.
You may end up getting some debt from the bank and some equity from an angel, or you might get some asset funding from an asset funder and a grant from say Innovate UK. What you get and where it is from, is often a function of the amount you want, the stage of your business, your attitude to debt vs equity and any security you might hold and be willing to pledge.
I advise all my clients to keep an open mind about where they get the funding they require as they may find that some funding (say business angel equity) comes with added benefits over and above the actual money itself. So see what there is first before ruling anything in…or out.
I am going to run through some of the pros and cons of each one in each section.