Not all businesses are lucky or successful in getting business grants or securing funds from venture capitalists at the start. Many business founders pitch in with their own personal assets or with the help of family and friends to get the startup going. Sometimes, professional angel investors also pitch in to form the seed capital, a loan or equity to help the business get off the ground.
For example…
When Peter started getting an increasing number of orders for his homemade gluten-free everyday desserts, he realised that he needs to provide the seed capital himself to scale his operations and thus increase capacity. To do so, he took out a loan from the bank and mortgaged his house. The funds raised through these activities was enough capital to expand his business to cater to the increased demand.
