Your funding options, and how we can help

Choosing between debt, equity, and grant funding can determine your company’s trajectory for years to come. We can help you understand the implications of each funding type and structure arrangements that align with your business goals, so you can focus on building the future rather than keeping the lights on.

Understanding your funding options

Here are the basic definitions of the big three funding options for your forward-looking enterprise:

• Debt funding means borrowing money that you’ll repay with interest, typically through loans or credit facilities. This approach lets you retain full ownership of your business but creates repayment obligations regardless of your organisation’s performance.
• Equity funding involves selling ownership stakes (usually shares) to investors in exchange for capital, which means sharing future profits and decision-making but without guaranteed repayment requirements.
• Grant funding can provide capital that doesn’t need to be repaid, though it often comes with specific conditions about how the money can be used and what outcomes must be achieved.

It’s worth mentioning crowdfunding is emerging as a competitive option for many future industries, where you essentially start selling your product or make commitments of varying degrees upfront in exchange for funding. We focus on the traditional big three on this page, but if you’re interested in avoiding some of the classic pitfalls with crowdfunding campaigns, we are happy to assist.

Starting the funding journey

Each funding type begins with different documentation that sets the foundation for negotiations. Equity funding typically starts with a term sheet that outlines the basic terms of the investment, including valuation, ownership percentages, and investor rights. Debt funding usually begins with a letter of offer that specifies loan amounts, interest rates, repayment terms, and security requirements. Grant applications require detailed proposals that demonstrate how your project aligns with the funding body’s objectives and how you’ll measure success.

What happens next

The equity funding process involves multiple rounds of due diligence, where investors examine your business model, financials, and growth potential before negotiating final terms. This process can take several months and requires documentation about your company’s operations and future plans. Debt funding typically moves faster, focusing primarily on your ability to service (repay) and secure the debt through cash flow analysis and asset evaluation. Grant funding follows structured application processes with specific deadlines, evaluation criteria, and reporting requirements that continue throughout the funding period.

How we can help

We can assist you in evaluating which funding approach best suits your business stage and growth objectives, then prepare the documentation needed to pursue your chosen path:

• Equity funding: We can draft term sheets, shareholder agreements, and disclosure documents that protect your interests while attracting investors. Our experience with technology companies means we understand the specific clauses and structures that work best for future-focused industries.
• Debt funding: We can review and advise on loan and security documentation, ensuring that you’re able to proceed with the loan and satisfy lender requirements that you receive independent legal advice prior to entering into the arrangement.
• Grant funding: We can assist with grant applications, compliance frameworks, and reporting structures that meet funding body requirements. Our technology background helps us articulate in plain language how your proposal aligns with grant objectives and will help you stand out from competing applicants.

Keeping investors happy