Debt funding
Debt funding involves borrowing money that must be repaid with interest, typically through loans or credit facilities. While it allows you to keep full ownership of the business, it carries repayment obligations regardless of how the year plays out. It is often the fastest route to capital when you have an established asset base or stable cash flows, but it becomes more challenging when your business model relies on a runway-to-revenue arc.
It suits businesses that already generate revenue, hold assets with security value, or require capital for specific purposes with predictable returns — such as equipment, fit-out, or inventory. It is harder to justify when growth precedes revenue, as lenders pricing risk against a runway-to-revenue arc may decline or impose terms that constrain your options at critical moments. We review and advise on loan and security documentation, and provide the certificates lenders require where independent legal advice is a condition of the facility.
Equity funding
Equity funding involves selling ownership stakes to investors in exchange for capital. You share future profits and decision-making, with no guaranteed repayment obligation; the cost is paid in governance, dilution, and the structural choices made early. It suits businesses where the path to value is years out and the model cannot sustain repayment obligations during that period. It fits when the upside is large enough to justify sharing it, when the investor brings more than money (sector knowledge, networks, follow-on capital), or when the scale of funding required exceeds what debt can provide.
It is less appropriate where founders want to retain full control or where the capital need is modest and short-term. We can help by drafting term sheets, shareholder agreements, and disclosure documents, using our industry experience to understand the clauses and structures future-focused industries actually need.
Grant funding
Grant funding provides capital that does not need to be repaid but comes with specific conditions on how it can be used and what outcomes must be achieved. While grants are non-dilutive, they also carry reporting obligations, milestone requirements, and, in some cases, clawback provisions if conditions are not met. They suit businesses with activities that align with a funder's policy objectives — such as R&D, commercialisation, regional employment, export growth, or specific sector priorities.
Grants sit best alongside other funding rather than as the sole source; a cap table or revenue base provides the financial credibility assessors look for. They are competitive precisely because the terms are attractive, so the question is not whether to pursue them but whether the application effort is proportionate to the size and probability of success. We assist with applications, compliance frameworks, and reporting structures, providing the plain-language alignment with grant objectives that stands out against the boilerplate the assessor might read from other applicants.
Crowdfunding
Crowdfunding is emerging as a competitive option for many future industries, essentially pre-selling product or making forward commitments in exchange for capital. This page focuses on the traditional big three, but if you want to avoid the classic pitfalls of crowdfunding campaigns we can advise separately.
