Business funding is critical for many entrepreneurs and small business owners. There being many companies out there desperate to loan you money at an eye-watering interest rate and so finding funding for your business can be a minefield of failed attempts, loan sharks and excessively long application forms. To help reduce the worry and stress surrounding business funding, we are going to break it down for you. There are several types of business funding that we are going to talk about:

  1. Angel Investing
  2. Crowdfunding
  3. Venture Capital
  4. Local Grants
Angel Investing

Angel investors tend to be wealthy people who will give a large chunk of money to a business for a share of equity in return. Quite often you won’t just get a sum of money, but also priceless business advice and support from an expert in your field of business. Where to find your angel investor: The Angel Investment Network, UK Business Angels Association, Angels Den


Crowdfunding involves multiple individuals contributing small amounts in order to fund your business. This type of funding is usually most effective if you can rely on your own large networks of workmates, associates, family, friends, etc. You can use social media and other communications to tell people about your crowdfunding project. Crowdfunding can be very effective as you only need each individual investor to donate a small amount – it’s much easier to persuade someone to donate £20 rather than £2000! However, you do still have to put the work in as it takes a long time for all the small donations to build up! We recommend: Kickstarter Indiegogo GoFundMe Crowdfunder

Venture Capital

Venture capitalists are only likely to invest if they feel certain that they will make a considerable return. They are private investors who will fund large sums of money to, usually, start up businesses in exchange for equity in the business. Similarly to angel investors, they may bring knowledge, contacts and experience as well as money, however they are likely to want a high proportion of equity to increase the amount of money that they can earn from your business in the long term.  They are also only likely to invest if you can demonstrate that your business has high growth potential.

Local Grants

Local grants are voluntary partnerships between local authorities and local businesses. They are non-repayable and help to fund businesses in a specified location. Examples of sources of local grants are Local Enterprise Partnerships (LEPs) such as:

South East Midlands Local Enterprise Partnership (SEMLEP)

Black Country Local Enterprise Partnership

Buckinghamshire Local Enterprise Partnership

The Business Board– Cambridge and Peterborough

Cheshire and Warrington Local Enterprise Partnership

Coast to Capital Local Enterprise Partnership

Cornwall and Isles of Scilly Local Enterprise Partnership

Coventry and Warwickshire Local Enterprise Partnership

Cumbria Local Enterprise Partnership

D2N2- Derbyshire and Nottinghamshire

Dorset Local Enterprise Partnership

Enterprise M3

Gfirst LEP

Greater Birmingham and Solihull

Greater Lincolnshire

Greater Manchester

Heart of the South West

Hertfordshire LEP

Humber LEP

Lancaster Enterprise Partnership

Leeds City Region

Leicester and Leicestershire Enterprise Partnership

Liverpool City Region LEP

The Local Enterprise Partnership for London

New Anglia, The Local Enterprise Partnership for Norfolk and Suffolk

North East LEP


Sheffield City Region

Solent LEP

South East LEP

Stoke-on-Trent and Staffordshire

Swindon and Wiltshire

Tees Valley Combined Authority

Thames Valley Berkshire

The Marches LEP: Herefordshire, Shropshire and Telford and Wrekin

We Are West of England

Worcestershire LEP

York, North Yorkshire, East Riding LEP