4 funding sources for new companies

One of the biggest challenges for an early-stage entrepreneur is being able to obtain adequate funding for his needs. This financing has to boost the growth of the company while also being sustainable, so as not to harm the financial health of the business.

When looking for a financing line for new companies, there’s a lot to choose from besides traditional bank credit. There are, in fact, lines and sources of funding designed for new companies, which are more advantageous. It is these forms of financing for new companies that we will bring you here, so that you can move from paper to reality and move on with your business.

1# Linha ADN Startup

Through this financing line, an early-stage company can obtain financing of up to €50,000 with a grace period of up to 24 months.

The Linha ADN Startup is intended for companies with 4 or fewer years of existence and with an equity of 15% or more.  Please note that the company must be created before the financing is granted by the bank. Use the “Company on Time” service to make your company’s official registration quickly and simply.

Find out all the details about interest, deadlines, where to make the application and other relevant data about the Linha ADN Startup here.

Tip: If you’re starting a startup, put your idea to the test with the Lean Canvas template. This table allows you to describe your idea clearly and objectively, so you can get an overview of your potential. Learn more about Lean Canvas here.

2# Linhas de Apoio ao Empreendedorismo e Criação do Próprio Emprego

These lines are for those entrepreneurs who make an opportunity out of the big challenges. In other words, these lines are aimed at unemployed or young people looking for their first job who want to create their own job by launching a company on the market.

Within this scenario, there are two financing lines for new companies:

– Linha Microinvest: allows financing of up to €20,000 per company, having a grace period of up to 24 months.

– Linha Invest+: finances between €20,001 and €200,000 for the creation of a company, having a grace period of up to 24 months.

Still on these helplines, two more details: self-employed workers on low incomes can also access one of these lines. In addition, this support can also be used to acquire the share capital of an existing company, provided that the business is seen as viable.

Find out all the details about deadlines, interest, where to make your application and other relevant data from these helplines here.

3# Business Angels

It is not the forms of financing for new companies in Portugal that we use the most. But it is a very interesting source of funding for two reasons: in addition to the capital it injects into a new company, the knowledge and network of the business angel also comes into play. This added value can accelerate the growth of the company, presenting it to new customers, suppliers, working methods, ideas, organizational structure, etc.

As a rule, when investing in a company a business angel becomes a partner and may or may not have decision-making power in the future of the company, depending on the agreement between the two parties.

If you are interested in obtaining this type of financing for new companies, we advise you to prepare a good pitch.

4# International Crowdfunding

Finally, an example more out of the usual for funding new companies: international crowdfunding.

And why do we advise international crowdfunding? Simply, because, from the outset, it’s faster to get the amount of funding you need using an international platform with more investors.

It’s still worth explaining how crowdfunding works. This is a form of collective financing directed to the launch of new business. When you enter a crowdfunding platform, you need to create a funding campaign – almost as if it were a marketing campaign for your business. In this campaign you should have a clear description of your company or product, indicating the amount of funding required.

For example, we advise you to explore the seedrs platform.

Learn more:

Seed Capital vs Venture Capital: what are the differences?

Need help financing your new company?

We put our know-how and network at your disposal, so you can accelerate your company’s growth to the fullest. Get in touch with us.