5 ways to get funding for your eComm brand

SCALING BUSINESS

August 7, 2024

Don’t let lack of capital hold you back in achieving your dreams. From government funds to crowd-sourced funding, there are lots of options for small businesses and start-ups.

It can be tough getting started. A lack of access to funding continues to constrain women-led small businesses*.

Here are some places where you can start to look if you need to raise funds to help grow yours.
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Revenue based funding

Finance offered based on the projected income of your business. This is where you pay back the loan by dedicating a percentage of your gross profits to reducing the outstanding loan balance. That means your repayments and loan term will fluctuate depending on how much profit you make; and you are not required to provide assets as collateral like with a bank loan.

Examples: Outfund, Shopify, Square Loans
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Equity based funding

Funding in exchange for part ownership of your business. In this instance you raise capital and have no debt repayments. The investors wait for a return on their investment whilst there’s more cashflow to grow the business.

Examples: Blackbird Ventures, Springboard Enterprises, Scale Investors‍

Brands who’ve done it this way: Kin Fertility

Crowdsourced funding

Also called equity-based crowdfunding, this is where start-ups raise funds usually from a large number of investors each investing a small amount. In exchange they get shares in the company.

Examples: Birchal, Equitise‍

Brands who’ve done it this way: BrewDog, Seabin, Coinstash

Venture capital

This is a form of private equity based funding we mentioned earlier. Venture capitalists usually invest in companies at different points in their growth journey. Usually starting at Series A when they may have a lower valuation all the way through to Series D where they may be raising hundreds of millions.

Examples: Blackbird Ventures, Square Peg Capital, Sequoia Capital‍

Brands who’ve done it this way: Modibodi

Government grants

If you’re doing business in Australia, you can use the government grants and program finder to look for support from across government.

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*Australian Small Business and Family Enterprise Ombudsman’s (ASBFEO) office.

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