As a student in a start-up, you’re most likely boot strapping your company – you’re investing your own time and money (and often the money of friends and family) to get the idea off the ground. This allows you to devote your own time to building a product and does not require pleasing investors or banks. This also allows you to maintain full control of your company.
As a student start-up there are several grants, bursaries, loans and accelerator programs you can apply to. These will all require a thorough application process and often come with some restrictions. This does, however, still allow you to keep full control of your company.
Many companies experience a time when they absolutely need to bring in outside, professional funding to their company. Companies who have a proven prototype, interested customers, existing sales or are looking to expand the business often find investments by Angel Investors or Venture Capitalists beneficial.
A bank loan can be the way of finding the money necessary to start a company but banks are naturally risk-adverse. Unless you are willing to put up something you own as collateral (such as a car or house), have proven sales or a letter of intent from a client, you are unlikely to receive a loan. Best case scenario, you will likely receive only a fraction of the value of your assets.
