How to secure funding for your dream business
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Posted: Fri 28th Feb 2025
10 min read
Have an idea for your dream business but need a cash injection to bring it to life?
Perhaps you're working on a side hustle and want it take it to the next level? Maybe you're already running your company and you want to scale it up?
Finding funding can help you achieve your goals. But how can you secure the funding you need?
In this blog, we talk about which funding options to consider, and what you need to do to get hold of that investment.
What funding options are available to you?
There are lots of funding options available to you today, from your local bank through to getting money from investors.
Here's a few examples to consider:
Loans
You borrow a lump sum of money from a lender, such as a bank or other financial institution, then you have to repay it with added interest.
Business loans can range from smaller sums (say, £1,000) to larger amounts (potentially into the millions), and terms can vary from a month up to a number of years.
You need to prove your ability to pay the cash back, usually using company financial statements.
Grants
These don't need to be paid back and are often awarded by the government.
To apply for a grant, you must check your business is eligible and write an proposal. You may also need a solid business plan that shows sales projections and cash flow forecasts.
Crowdfunding
This is where you raise funds from lots of people who individually contribute a small amount of money.
You can use crowdfunding platforms such as Republic Europe and Crowdcube for this purpose.
Angel investment
Angel investors are individuals with a high net worth. They provide funding typically in exchange for an ownership stake in your company.
Think TV shows such as Dragons' Den (in the UK) and Shark Tank (in the US). Investors typically use their own cash and you could find them via online angel investor networks – or even by reaching out to your friends and family.
Venture capital
This is a form of private equity aimed at new businesses that are believed to have long-term potential for growth.
As this can be high risk to venture capital investors, they may take a high percentage of your company's equity in exchange for giving you the funds.
VIDEO: How to raise capital for your business
Business founder and lawyer Patricia Wing shares tips on various funding sources like debt, angel investors, venture capitalists, grants and crowdfunding platforms:
How to get pitch perfect if you want to win investment
Entrepreneur Simon Squibb has founded 19 companies, with support platform HelpBnk a recent example.
Having invested in nearly 80 businesses, he has a clear perspective on what to do when pitching for funds. He says:
"Make sure you're clear on what you're going to do with the money so the investor understands how they can bring value.
"Because, for example, if someone pitched to me and said – and this happened recently – that they need £500,000 for marketing... Well, I'm like, ‘I can market you for free. You don't need to spend all that money on marketing.'"
And you need to be honest about your business. You want to give potential investors a transparent view of where things stand.
After all, it's better for them to know beforehand and they might be able to support you in fixing the issues.
Simon adds:
"Understand your weaknesses as a company and be honest about them in your pitch. I always want to see the vulnerabilities. I want to understand the problems in the business.
"So that, one, it's not all sunshine and lollipops. I want to know what the problems are so I can see how to fix them. And equally, I want to know so that I don't get caught off guard and you tell me about the problems later."
Finally, purpose is important – make sure you include this in your pitch. Simon says:
"A lot of people, they don't put their purpose in there. They're busy telling me about the market gap they're going to fill. Or, telling me about how they're going to be worth billions.
"I want to know why it's personal to the person pitching the business, why it matters to them. And that's what's going to make them follow through. People don't include that enough in their pitch."
VIDEO: What's your dream?
Key insights from Simon Squibb on entrepreneurship, education and funding dreams – debunking myths and inspiring impact-driven success:
Three tips to find funding
Ready to start finding funding for your business, now you know what's available to you? Here are three things to do now.
1. Reach out to your network
Michelle You is the co-founder of Supercritical, a marketplace that aims to bring transparency to the carbon removal market.
She wanted half of the fundraising for the company to come from women and reached out to people she knew.
Michelle says:
"I asked women in my network who had never invested before. I told them, 'I want you to invest in my company'. Just write me a cheque for £5,000 if you can.
"I just kind of walked them through what the relationship would be like and how much money I wanted."
So even if they've not invested funds in a business before, don't be afraid to reach out to people in your current network.
2. Search online for investors
Rushina Shah is the founder of snacking company Insane Grain. Before taking her concept down the venture capital funding path, she looked at some unconventional ways to generate money.
She says:
"Initially, I reached out to my Instagram followers. Which sounds ridiculous, as I only had about a thousand. I got four people to respond to me on Instagram, and they all ended up being investors."
So try using social media to reach out to people you know (or connect with new people who have a shared interest and might be able to support you), or do an online search for angel investor groups.
3. Try accelerator programmes and pitching events
Sarah Bone is the co-founder of private messaging app YEO. She took part in a cyber security accelerator and gained lots of value.
She says:
"Not only did they help us hone our pitch and how to present what investors were looking out for, they gave us access to investors, as well as a sounding board.
"We got to bounce ideas off from that experience, and we completely pivoted our business.
"It is a bit nerve-wracking standing up in front of a massive crowd of people and pitching. But it does give you that boost where you think, 'Actually, I've got this. I can go into a room and do this.'"
Start the journey today to win investment for your business
If you need investment, take the time to consider and research the best options for your business.
You might find a loan is the best option. Or you may realise that angel investment is the ideal path to take.
If you're pitching for investment, make sure you:
practise what you're going to say
make it clear why you need the funds
have a strong grasp of your business financials
Don't worry if you don't win funds the first time round, as it might take a few goes before you find the right investor.
Simon Squibb has some final words:
"If someone comes in and brings value, it shouldn't just be money. Hopefully, it'll also bring expertise and support to help you make your business work. They're the best sort of investors to get."
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