What financing options are typically available to startups?

Startups typically have access to a diverse range of financing options that can cater to different needs and stages of their growth. Among these, self-funding allows entrepreneurs to invest their personal savings or resources into the business, providing an initial foundation without diluting ownership. Angel investors, usually wealthy individuals who provide capital in exchange for equity or convertible debt, can offer not only funding but also valuable advice and networking opportunities. Venture capitalists invest larger sums of money in exchange for equity, often looking for high-growth potential businesses that can generate substantial returns. Crowdfunding has emerged as a popular option, enabling startups to raise small amounts of money from a large number of people, typically through online platforms.

This combination of financing sources helps entrepreneurs leverage their unique business ideas, providing them with the flexibility to choose options that can best support their growth trajectory. Other options, such as bank loans and government grants, while viable, do not encompass the full spectrum of what is available to startups, which is why they are less comprehensive than the correct answer.