How Companies Are Funded And Make Money

Crowd-Funding

The practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.

Places like kick starter is a good example of this. Companies can post projects on the site and people can show interest in them and donate money.

 

Business and Finance

Grants

A grant is an amount of money given to an individual or business for a specific project or purpose. You can apply for a grant from the government, the European Union, local councils and charities.

Tax Relief

Remission of a proportion of income tax normally due on earned income.

Business Angel (Angel Investor)

An angel investor or angel (also known as a business angel, informal investor, angel funder, private investor, or seed investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Loans

A thing that is borrowed, especially a sum of money that is expected to be paid back with interest.

 

Sales and Advertising

Sales

The exchange of a commodity for money; the action of selling something.

Advertising

The activity or profession of producing advertisements for commercial products or services. This is a good way to earn attention for a product , companies get payed for running ads for other companies meaning it is easy to spread word of a product.

Sponsorship

This is advertising that has a deeper association between an advertiser and a publisher.

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