Grants Won’t Fund Your Business; Here’s What Will
By Holly Eve, Contributor
Sun, September 13, 2026 at 10:27 p.m. GMT+3
6 min read
Startups need capital to launch and grow, but grants are rarely a reliable source of funding. While multiple funding paths exist, grants are often competitive and reserved for businesses already generating revenue.
According to Alice Cherng, CPA, Business Consultant, "With so many grants out there, it’s easy for first-time founders to see them as an accessible way to fund a business. But the reality is, grants are competitive, unpredictable, and rarely enough to build a sustainable business—even when you’re fortunate enough to receive one early on."
Setting aside time to research and apply for grants aligned with your business can be part of your plan, but a broader funding strategy is crucial for growth and scaling.
"Founders should create a solid financial plan that accounts not only for what it will cost to launch their business, but also how they will cover ongoing expenses until revenue begins to flow," Cherng emphasizes*.*
Here’s What Will Fund Your Business:
-
Personal Savings: Self-funding your startup through personal savings is a common path. This demonstrates commitment and allows for complete control over the business.
-
Friends and Family: Many founders secure initial funding from friends and family who believe in their vision. Be prepared to offer equity or favorable repayment terms.
-
Angel Investors: Angel investors are high net worth individuals who invest in startups with high growth potential in exchange for equity.
-
Venture Capital (VC): VCs provide funding in exchange for equity, focusing on startups with strong market potential and scalable business models.
-
Crowdfunding: This involves raising small amounts from a large number of people, typically through online platforms like Kickstarter or Indiegogo.
-
Bank Loans: Traditional bank loans offer predictable repayment terms but may require collateral and a proven credit history.
-
Incubators and Accelerators: These programs provide funding, mentorship, and resources in exchange for equity or a small percentage of future revenue.