Startup business owners who may not qualify for competitive loans or grants, or who don’t have the cash flow to allow for loan repayment, may choose to give up equity in their business in exchange for venture capital funding. That means that rather than securing financing through a bank or another lending institution or through a grant program, an entrepreneur would fund their business through a private investor who would then own a piece of the company.

Many entrepreneurs will not be willing to part with the equity in their business that is required to secure VC funding. And the less established or proven your business is, the more equity you may have to give up to get the money you need or want. Venture capitalists may also require a board position or the ability to have some control over decision-making so that they can protect their investment. This can be a nonstarter for some small business owners.

M&T Bank can help you find the best business funding options for your situation. We have several loan options with competitive rates and flexible terms that allow you to maintain full control of your business. And we can help you research grant opportunities that may be a fit.