I run a technology or software business

1. L0

   Free or nearly free

   Little or no cash cost, though most take time and admin. Some bring money in, and a few have small fees.
   • Grants, tax reliefs and prizes

     Capital allowances, Patent Box and creative-industry reliefs

     Tax reliefs that cut your tax bill when you buy equipment, earn profits from patents, or make films, TV, games or shows. They do not bring in new money, but they leave more of your own cash in the business.

     Months
   • Grants, tax reliefs and prizes

     Equity-free accelerators, fellowships and prizes

     Programmes and competitions that give founders money, training or both without taking shares. Places are limited and competitive, and the money is usually modest.

     MonthsUp to £75k
   • Grants, tax reliefs and prizes

     Innovate UK grants

     Competitive grants from the UK's innovation agency that pay part of the cost of innovation projects. You do not pay them back, but you must fund the rest of the project yourself.

     Months
   • Grants, tax reliefs and prizes

     Local, regional and sector grants

     Grants from councils, combined authorities, the devolved governments and sector bodies, often for equipment, jobs, energy saving or exporting. You do not repay them, but they are usually small and come and go.

     MonthsUp to £315k
   • Grants, tax reliefs and prizes

     Research and development (R&D) tax relief

     Companies that spend money on qualifying research and development can claim it back through Corporation Tax, as a tax credit or, for some loss-making companies, as cash.

     Months
   • Crowdfunding and community finance

     Reward-based crowdfunding

     People pay in advance for a reward, often the product you plan to make, through an online platform. You give up no shares and repay nothing, but you must deliver what you promised.

     Months
2. L3

   Specialist secured debt

   Borrowing secured on specific assets such as invoices or stock, with more fees and conditions than mainstream debt.
   • Asset-based and specialist lending

     Venture debt

     A loan for fast-growing companies that are already backed by venture capital, used to stretch the money from an equity round further without selling more shares.

     Weeks
3. L4

   Expensive or fast

   Quick to arrange, often unsecured, and usually the most expensive way to borrow.
   • Alternative and fast debt

     Revenue-based finance

     An advance repaid as a fixed share of your future sales, plus a flat fee agreed up front. Repayments fall when sales are slow, but the fee can make it expensive, especially if you repay quickly.

     Days
4. Equity rungs. These routes cost no interest, but you give up part of the ownership and control of your business. They are ranked by how much you give up, not by a made-up interest rate. Over time, equity can be the most expensive money of all.
   E1

   Light dilution

   You sell a small share of the company, usually to many small investors or people you know, and keep control of how it is run.
   • Crowdfunding and community finance

     Equity crowdfunding

     Selling shares in your company to many investors, often including your customers, through an online platform authorised by the FCA.

     MonthsGives up shares
   • Private equity investment

     Friends and family

     Money from people you know, as a loan, as shares, or both. Often the first money into a new business and on flexible terms, but it puts relationships at risk if things go wrong.

     WeeksLoans, or shares if you choose
   • Hybrid instruments

     Advance subscription agreement (ASA)

     An investor pays now for shares that the company will issue later, usually at the next funding round. If set up correctly, it can qualify for SEIS or EIS tax relief, unlike most convertible loan notes.

     WeeksGives up shares
   • Hybrid instruments

     Convertible loan notes (CLNs)

     An investor lends money to your company on the understanding that the loan will usually turn into shares later, often at a discount, when a set event such as the next funding round happens.

     WeeksMay give up shares
5. E2

   Significant dilution and investor rights

   Investors take a meaningful stake and usually get rights such as a board seat, a veto over big decisions, or a preferred return.
   • Private equity investment

     Angel investment

     Experienced individuals, often investing together as a syndicate, buy a minority stake in an early-stage company and give advice and contacts as well as money.

     Months£5k to £500kGives up shares
   • Private equity investment

     Corporate venture capital

     A large company invests in a smaller one that could help its own business, in return for shares. You get money plus the corporate's contacts and know-how, but you share your ideas with a possible competitor.

     6 months or moreFrom £1mGives up shares
   • Private equity investment

     Family offices and wealthy private investors

     Wealthy families, often through a private company that manages their money (a family office), invest directly in businesses. They can be more patient and flexible than funds, but there is no standard process and they are hard to find.

     6 months or moreGives up shares
   • Private equity investment

     Venture capital

     Professional investment funds buy minority stakes in young, high-growth companies, usually in several rounds, and expect a large return when the company is sold or listed.

     6 months or moreGives up shares

Sources

1. GOV.UK: R&D tax relief: the merged scheme and enhanced R&D intensive support (updated 8 January 2026) · checked 10 October 2026

Facts about each route are sourced on its own page.