Starting a business is exciting, but finding the money to launch or grow is a big challenge. Many entrepreneurs believe the only way to get funding is by giving away part of their company to investors—but that’s not always the best choice. The good news is, you don’t have to give up ownership just to secure the funds you need.
In this article, we’ll explore how to get startup funding without losing equity. We’ll also answer key questions like:
- How do startups get funding?
- What are the best funding sources for a new business?
If you’re looking for a step-by-step guide on how to fund your startup while staying in full control, check out “The Funding Formula: Raising Money Without Losing Equity.” This book breaks down practical funding strategies that can help you build your business without giving up a piece of it.
About the Book
If you want to discover alternative financing options such as crowdfunding, grants, partnerships, etc. Or, even interested in learning how to build compelling proposals, quality relationships with your investors, and leverage creative approaches to meet your financial goals.
This book, packed with actionable insights and inspiring success stories, will show you how to think outside the box and raise money strategically. And, because you shouldn’t give up a piece of your dream to make it a reality, get ready to fund your business on your terms using the guide from this audiobook.
See: How to Build Team Empowerment and Create a Team That Delivers Results
How does a startup get funding?
Starting a business is exciting, but finding the money to fund it can be tough—especially if you don’t want to give up ownership. The good news? There are several ways to raise money without bringing in investors who will take a share of your company. Here are some smart strategies to get the funds you need while staying in full control of your business.
Bootstrapping: Start with What You Have
Many successful businesses, like Mailchimp, GoPro, and Zoho, started with bootstrapping—using their savings and early profits to grow instead of seeking outside investment.
Why is this a great approach?
- You stay in full control of your business decisions.
- There’s no pressure from investors to grow too fast.
- You keep 100% of your profits as the business expands.
How to make it work:
- Cut unnecessary spending and focus on what truly matters.
- Reinvest any profits back into the business instead of spending them.
- Build a lean business model that generates income quickly.
Apply for Grants and Startup Competitions
Grants are a fantastic way to get funding because they don’t need to be repaid. Governments, foundations, and private organizations offer grants to help businesses grow.
Where to find grants?
- Tony Elumelu Foundation – Supports African entrepreneurs.
- Google for Startups – Offers funding and mentorship.
- Bank of Industry (BOI) Grants – Helps small businesses in Nigeria.
Try Crowdfunding
Crowdfunding lets you raise money from everyday people who believe in your business. Instead of relying on a single investor, you get small amounts of money from many backers.
Top crowdfunding platforms:
- Kickstarter – Great for creative and tech projects.
- Indiegogo – Supports startups and business ideas.
- GoFundMe – Ideal for personal and business fundraising.
How to succeed with crowdfunding:
- Tell your story: People invest in ideas they connect with.
- Offer rewards: Give early backers discounts, exclusive access, or branded gifts.
- Promote your campaign: Share on social media, email newsletters, and forums to reach more people.
Get a Business Loan Without Giving Up Equity
Many entrepreneurs avoid loans because they worry about repayment, but the right loan can give your startup a boost without costing you ownership.
Best startup loan options:
- Government-backed loans – Often come with lower interest rates.
- Microloans – Small business loans from microfinance banks or online lenders.
- Revenue-based financing – Get funding in exchange for a small percentage of your future earnings, rather than equity.
How to qualify for a loan?
- Have a clear business plan explaining how you’ll use the money.
- Show that your business can generate revenue to repay the loan.
- Maintain a good credit score to increase your chances of approval.
You should read this: Why Economic Resilience is the Key to Long-Term Business Success
Partner with Companies That Support Your Business
Big brands often support small businesses that align with their goals. A strategic partnership can help you access funding, resources, and customers—without giving up equity.
Ways to secure business partnerships:
- Sponsorships – Large companies fund events or marketing campaigns for small businesses.
- Joint ventures – Collaborate with another business to launch a new product or service.
- Licensing deals – Allow bigger companies to sell your product under their brand while you keep ownership.
Pre-Sell Your Product or Service
Instead of looking for investors, why not sell your product before it’s officially launched? This method not only brings in cash but also validates demand for your idea.
How to make pre-selling work:
- Offer discounts to customers who buy early.
- Create excitement on social media with behind-the-scenes content.
- Use email marketing to keep potential buyers engaged.
Trade Services Instead of Paying Cash
Running a business requires a lot of resources—marketing, office space, web design, and more. But instead of spending money, you can trade your skills or products with other businesses in a barter exchange.
Examples of bartering:
- A graphic designer can create a logo for a social media expert in exchange for free marketing help.
- A caterer can provide food for a photography studio’s event in return for free photoshoots.
- A tech startup can offer free software to a legal firm in exchange for business advice.
What is the best source of funding a start-up?
The right way to fund your business depends on your goals, how much risk you’re willing to take, and how much control you want to keep. If you’d rather not share ownership with investors, here are some great options:
- Use Your Money (Bootstrapping): Perfect if your business doesn’t need a lot of cash to get started.
- Apply for Free Funding (Grants & Competitions): Ideal if you want financial support without paying it back.
- Raise Money from the Public (Crowdfunding): Works well for businesses with exciting products and strong marketing strategies.
- Borrow Wisely (Loans & Revenue-Based Financing): A smart choice if your business has a steady income and can handle repayments.
- Sell Before You Launch (Pre-Selling & Partnerships): Great for businesses that can secure early buyers or team up with bigger brands for support.
Scorecard Questions on how to get startup funding
To help you assess whether you’re on the right track with raising money for your startup without losing equity, answer these questions honestly.
Related: Breaking Down the Stages in Team Development: A Leader’s Guide
Frequently Asked Questions
How can I raise money for my startup without giving up ownership?
You can fund your startup without giving up equity by bootstrapping, applying for grants, using crowdfunding, getting business loans, forming strategic partnerships, pre-selling products, or bartering for services.
What is the best startup funding option that doesn’t require giving up equity?
The best option depends on your business needs, but grants and competitions are ideal because they provide free money with no repayment. Crowdfunding is another great option, allowing you to raise money from supporters without giving away ownership. If you already have revenue, revenue-based financing or business loans may be good choices.
Is bootstrapping a good strategy for all startups?
Bootstrapping works best if you can start small and grow gradually. If your business requires heavy upfront investment (e.g., manufacturing or tech development), you may need additional funding sources like grants, loans, or partnerships.
Where can I learn more about raising money without losing equity?
A great resource is The Funding Formula: Raising Money Without Losing Equity. It provides step-by-step strategies to help you secure funding while keeping full ownership of your startup.
Conclusion
You can fund your startup without giving away a share of your business if you choose the right money sources. Whether you use your savings, apply for grants, launch a crowdfunding campaign, take a business loan, or team up with strategic partners, there’s always a way to raise funds that fit your needs.
For a step-by-step guide to getting the money you need while staying in full control of your business, check out The Funding Formula: Raising Money Without Losing Equity.
