6 Types of Investors Startup Founders Need to Know About
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6 Types of Investors Startup Founders Need to Know About

If you step back to the 1990s, very few financing options existed for startups. The venture capital space was dominated by a few large firms. Founders had to turn to their personal bank account, loans, or family and friends to raise capital for their business.

In the early 2000s the internet takes the world by storm. The capital required to build a business begins to decline and new investors step in to help more entrepreneurs start companies (like Y Combinator in 2005). A few years after YC and we see more venture capital firms and financing options pop up.

Today the financing and investor options for founders continue to evolve. The rise of rolling funds, pre-seed funds, and seamless revenue financing has allowed more entrepreneurs to secure the right financing for their business.

At the end of the day, every business is different. Each business has their own set of needs and expectations. Understand what type of investor will be most beneficial to your business and form a gameplan to raise capital.

As more financing options become available, more founders and startups will have opportunities to succeed. No matter what type of capital you decide to raise - pick the investor that can help your business the most, not the investor that will look best in headlines.

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