Funding for tech startup

Types of tech startup financing

8 min read

Technology is something that is high in demand. Business owners, government organizations, medical science, Education, and everywhere, technology is something that cannot be neglected.  Information technology or IT is the vastest using Technology nowadays. Softwares are now part of our life, even if you want to order food from different restaurants you just need to go on an app and order a variety of food from different restaurants at the same time.  Especially E-Commerce apps that make life easy you just simply need to click and your need comes to your doorstep.

Here we discuss funding for a tech startup in detail so that persons who want to start their attack business can take advantage by reading this article.

Types of tech startup financing:

  • SweatEquity: Work in return for ownership not for cash in the company.  It is for any level either director, Contractor, employee, advisor, etc.

  • Licensing proceeds: Under this category are usually e an up-front fee paid to the inventor or more when it is commercialized. The company used this Tech startup When they have modified their existing product with new ideas or simply upgraded it.

  • Government programs: These programs are especially E for the research level and for the product that made during their research and that it can be helpful for commercial purposes. Usually, government programs are designed for the student of technology.

  • Cash from customers:  you can go for it when you know that your product is that much interesting for the people, so they can pay you for it before they get the product.

  • Debt: Debt is the borrowed money that you must be paid with interest.

  • Cash equity:  If you go for cash equity then you must give ownership to the investor in exchange of invest in your company. Basically, when an investor demands cash equity it means share ownership.

Main sab industries for Tech startup:

Below are listed some sub-Tech industries that grab the attention of investors and are high in demand.

  • Financial Technology  
  • Food Tech startup
  • Education Tech startup
  • Biotech startup

  1. FIN-tech or Financial Technology startup:  

Fin-tech (Financial Technology)  is Is a Sab Technology Industry that leads to gain funds.

Nowadays, most companies, government sectors, banks, and other organizations are using financial software for the management of their financial terms. Financial transaction apps mobile wallet cash transfer apps and others are using frequently, due to this reason venture capitalist angels other investors are more interested to find in the businesses that make these apps and for Financial Technology betterment applications and software.

  1. Food Tech startup:

Food Technology means using state-of-the-art machinery and applications that help make those works easy that was not before. Artificial intelligence is Is using in every field of life whether it's in the food sector or any other department.

Food-making or cleaning industries do all their work through machinery that is totally based on artificial intelligence and artificial intelligence is operated with computers with the help of applications and software.

You can order from multiple restaurants at the same time under one app this is also a wonder of Technology. Especially after this pandemic,  everything is transferred online. You don't need to go out for your grocery shopping just select items from the grocery shopping app and click on check out, your grocery is at home.

  1. Education Tech startup:

Education itself is a deep well that requires different software through which learners can dive and easily swim.

Many software such as English learning, graphics, accounts, etc make in past just to help students, and all these need funding to start up.

The venture capitalist is the source of funding that's especially e point Technology e startups also government grants fund this sort of apps and software that is specially designed for education purpose.

  1. Biotech startup:

Biotechnology is a technology that works on bacteria and viruses, especially after this pandemic we came to know that there is no certainty of life. Continuous study of viruses and bacteria also the technology used to identify such sort of bacteria that can harm human health is much needed.

The government plays a very important role in it. government financing much help in this industry to grow. The industry should need a private concern as well.


Technology is high in demand with respect to this investors are more intersted to invest in technology. If a startup business is related to biotech, EDtech, food tech or financial tech then it is sure you will be pick up hand on hand by the investors.

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