The Financing of the Startup Life Cycle

Each source of financing in the market has its own characteristics, with different benefits and costs. Therefore, there are more and less appropriate sources of financial resources for each company, depending on its needs. With this in mind, this chapter presents a list of the main sources of financing by stages of the life cycle of Brazilian startups. Definitions, investment processes, challenges that need to be overcome and cases of Brazilian companies that use each source are discussed. Knowing the differences between funding sources is extremely important for entrepreneurs to make decisions about which type of capital is the best option to finance their businesses.