Question

What are the most common ways for start-up firms to raise financial capital?

Short answer

The following are the most typical ways for start-up companies to raise funds:- Raise capital from personal savings; - Take out a credit card loan;- Approach investors who can contribute money in exchange for a stake of the company.

Step-by-step solution

Concept introduction

A start-up company is one that is still in the early stages of operations. The primary goal of a startup company is to grow quickly as a result of providing something that fills a specific market gap.

Explanation of solution

The following are the most frequent ways for start-up companies to raise financial capital: - Raise financial capital from personal savings; - Take out a credit card loan:-Approach investors who can contribute money in exchange for a part of the start-up company.