seed funding

Here are answers to startup funding that everyone wants to know.

How can I get seed funding for my start-up?

Entrepreneurs can use various methods to raise seed funding. Crowdfunding is one of the methods that can be used. It works when lots of individuals invest money into a company or an idea in return for a reward. Crowdfunding specifically works for markets that have transitioned to the GTM stage. It can work as a great way to build seed capital for some companies however, it does not suit all business types and may not work well for some of them. An alternative approach to raise angel funding for start-ups is through a strategic alliance with a large player from the brick and mortar part of an allied industry.

Business development loans

Another way of raising money for start-up funding can be done by taking a loan. For entrepreneurs, banks have a special program, where they offer loans depending upon the requirements of the business. These loans can be either to fulfil the working capital requirements or can be just to fund a project.

Venture capital

Entrepreneurs often view venture capital as the right medium for start-up funding. Venture capitalists bring in the money in return for equity but that is just the tip of the iceberg. VC’s generate real value by helping the start-up scale up by opening doors for strategic alliances, by introducing potential customers and partners and also by acting as the sounding board for the business.

start-up find investors

How does a start-up find investors in Canada?


Networking is key for any good entrepreneur. It is very important to know the people who are a part of your industry and this also includes the competition. This also allows you to learn about potential investors, understand what they are looking for and how to go about approaching them.

Incubators and accelerators

Incubators and accelerators are people who provide start-ups with specialized resources that are prepared specifically for entrepreneurs when they look for investors. An incubator helps the entrepreneur to develop a solid idea, build a proper business plan and make the start-up ready for making an investor pitch. Accelerators do exactly what they sound like, accelerate the growth of the business.

Mentorship programs

Business mentorship programs are a great way to not only gain business knowledge but also get access to a network of potential investors. Hand-holding by mentors through the process of looking for investors is a part of the mentorship program. This permits a “first time right” positioning for growth which is essential for creating the perfect elevator pitch!

What is the best way to find investors for business in Canada?

The different stages of start-up funding are as follows:

Bootstrapping: In this stage, the entrepreneur starts the company with little capital. The money is generally invested from the entrepreneurs own pocket or a small business loan from friends and family.

Seed Capital: In this stage, an investment is made at the preliminary stage of the start-up. Seed capital is required to help the planning of a business up to a point when the company starts selling a product or service. Seed capital takes care of the expenses until the business can make better money and attract more investors.

Series B: In this stage of funding the capital-raising round is targeted towards market expansion. At this stage, the funding intends to scale a small team into a larger team that is capable of developing, producing, and selling at a higher rate. The underlying basis of Series A startups is that of an established startup including a founding team, a proof of concept, and a good track record of capital management from the previous round of funding.

Series B: Series B fundraising is the third level of funding required by a start-up. In this round, the funds are used to scale up operations moving a small business into a larger business bracket. Increasing availability, customer outreach, increasing productivity, and increasing reach are some of the items that Series B funding attempts to address.

Series C: Series C round is the financing stage where the company has proved to be successful in the market with a potential for a larger market. Exceptional management structure and a history of growing profitability mark this stage. At this stage, the venture capitalist will have already surpassed the break-even point and is now on the lookout for a strategy to exit.


Initial Public Offering: A privately owned company lists its shares on a stock exchange in an IPO, making them available for purchase by the general public.


Personal investment, Venture capital, Angel investors, Business incubators, Government grants & subsidies, Bank loans are the primary funding sources for a startup.

About the problem you are solving, The demography that has that problem, How is your method different, Who is your competition, How will you monetize your business, and most importantly, when your investors see some profits.

Funding enhances visibility and attracts the attention of the target market. It adds value to your venture and proves to prospect partners and end-users, as well as to future investors, that your idea is worth considering.

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