TL;DR
This guide covers where teen founders can find money, from pitch competitions and youth grants to crowdfunding, family, and angel investors. Competitions and grants give you equity-free cash, while investors take a share of your company and want proof people will pay. It's written for you if you're a high school founder with an idea or an early product. In most US states, you're a minor until 18, so a parent or guardian usually signs any investment deal. If you want a mentor while you build toward your first pitch, Young Founders Lab is a strong place to start.
Equity investment isn't the only way to raise money as a teen founder, and many competitions and grants are built just for you. You can get money for your business without giving up equity, which is a share of ownership in your company, and often get the resources and mentorship you need to keep building along the way.
If you're looking for more ways to raise money for your business, check out these elevator pitch competitions for high school students and internships at VC firms for high school students.
Who actually invests in teen founders?
Most teen founders get their first funding from competitions, grants, and people they know, not from venture capital firms. Traditional investment isn't a simple option when you're under 18, but plenty of other sources can fund your business, often with extra perks like mentorship. Many of the options below are built for teen founders, and some don't ask you to give up any equity at all. For a closer look at the whole process, see our guide to getting investors for a high school startup.
Pitch and business plan competitions
Business competitions offer cash prizes to students with a promising idea. They're a great starting point, since you get resources and mentorship to shape your idea in a competitive setting. The catch is that prizes are hard to win, but even entering pushes you to build a working prototype or proof of concept. Our list of business plan competitions with cash prizes is a good place to start.
Youth grant programs
Many nonprofits and entrepreneurship organizations offer grants to help teen founders build their businesses. The process can look a lot like a pitch competition: you fill in an application, pitch your solution to a panel, and receive an equity-free seed grant along with mentorship and support. The downside is that eligibility can be strict and the timeline can be long.
School and community sponsorship
If your business solves a local problem, you can ask your school or community organizations to fund specific costs. Some local funding programs also work like an accelerator, giving you the training you need to develop your idea.
Crowdfunding
Crowdfunding lets you raise money from lots of people online while keeping full ownership of your business. Early founders use crowdfunding campaigns to raise money, start production, and test whether people want their product. A strong campaign usually starts with buzz on social media, where you share what you're building and point interested people to your campaign page. Most campaigns offer early access or let backers pay in advance for the product. Our guide to crowdfunding your high school business walks you through setting one up.
Family and friends
Friends and family are often more willing to back an early-stage business than outside investors. Ask for a small amount to cover specific costs, such as buying supplies or building a prototype. Be clear about how much you're asking for and whether it's an investment or a loan, and put any repayment terms in writing to avoid misunderstandings later.
Angel investors
Angel investors are individuals who invest their own money, and they occasionally back teen startups when the idea is exceptional. This is rare and comes with legal hurdles, so lean on the other options on this list first. Getting investment for an idea alone is very unlikely, so you'll have a much stronger case once you have a working product, paying customers, or proof of demand. When you're ready, cold emailing investors is one way to land your first meetings.
Can a minor legally take investment?
You usually can't accept traditional investment on your own as a minor, so a parent or guardian has to sign for you. Most US states set the age of majority at 18, and contracts you sign before then are usually voidable, which means you could cancel them later. That's a big risk for an investor, so a parent or guardian typically acts as your legal representative: they register the business, open the business bank account, and sign investment contracts. Rules differ by country and state, so check your local laws to confirm.
The good news is that you have options that don't require a registered business or giving up equity. Grants and competitions are a great way to get early money to build your first prototype or start initial production. Once you've shown people want your product through a working version or paying customers, other kinds of investment get easier to win.
7 steps to pitch your startup to investors
Getting funded, whether by an investor, a grant, or a competition, takes more than a good idea. You need to convince people your business has real potential, show what problem it solves, and explain exactly how you'll use the money. These seven steps help you prepare your pitch and improve your chances.
1. Work out how much money you need.
Before you look for funding, list what you need the money for and your expected costs, such as product development, marketing, or production. Asking for a specific amount and showing exactly how you'll spend it makes a much stronger case.
2. Find the right opportunity for your stage.
Different options fit different stages. If you're still at the idea stage or just starting to build, competitions are a good fit. Once you have some proof your idea works, you can move on to grants. To approach investors, you'll usually need paying customers or solid proof of demand. Check each opportunity's eligibility, funding limits, and deadlines before you apply.
3. Gather evidence that people want your product.
You might have a great idea, but investors won't know it's worth backing unless they see real demand. You can test your idea with customer surveys, a Kickstarter campaign, or feedback from your target audience. Our guide on finding your first customers as a teen entrepreneur can help you get there.
4. Build your pitch around the problem.
Your pitch should explain the problem you're solving, who your target customer is, why existing solutions fall short, and how you'll fix it. If you have competitors, show what makes you different and why someone should back you instead. For a step-by-step walkthrough, see our guide to preparing a business pitch in high school.
5. Bring numbers you can defend.
Use numbers to show your business's potential. Estimate the size of your target market and look up what competitors earn. Then add your own figures: cost per product, selling price, estimated margin (what you keep after costs), and paying customers or revenue if you've already launched. Double-check every number so you can explain it when you're asked.
6. Practice answering questions.
List the questions your pitch is likely to raise, then ask a mentor or friend to listen and push you with tough ones. When you answer, walk people through your thinking, and keep key figures and facts close at hand.
7. Follow up after your pitch.
Your first pitch to a panel of judges or an investor is a valuable learning experience, and you'll get better each time. Reach out afterward and send any extra information they need to make a decision. If you don't get funded, ask for feedback and use it before your next pitch.
What questions do investors and judges ask teen founders?
Investors and judges won't go easy on you because you're a teen, and many will ask tough questions to test how committed you are. Prepare for the five below before you walk into the room.
How do you know people will pay for your product?
Expect this one from almost every investor. Your idea might be great, but investors want proof of real demand and that people will actually pay. You don't need a working prototype to show this, since customer surveys count as evidence too. If you do have a prototype, share your pre-orders, early sales, or customer feedback.
How is your business different from existing competitors?
Very few businesses have no competition, and the ones that don't often have to create demand from scratch. Judges want to know why customers would choose your product over what's already out there. Research your main competitors and look for gaps in the market. Then be ready to name your specific advantage, whether that's a feature, a gap you fill, or a better price.
What will you do if your business doesn't grow as expected?
This question tests whether you've thought about what could go wrong and have a plan for it. Prepare by listing your biggest risks, how you'd handle each one, and what you'd change if your first plan doesn't work.
Why should we invest in you instead of a more experienced founder?
Investors may wonder whether you have the commitment and skills to run a business while you're still in school. Answer by sharing why you started this business and what drives you. Point to the skills that give you an edge, what you've already achieved, and how you'll balance the business with school.
How will your business actually make money?
Investors want to see a revenue model that lasts and a clear path to profit. Explain how you'll price your product or service, what extra costs you'll cover, like delivery or overhead, and what margin you'll keep. If you won't be profitable right away, say when you expect to be. Our guide on pricing your products as a teen entrepreneur can help you work out these numbers.
Frequently asked questions: pitching a startup to investors as a high school student
1. What is a pitch deck?
A pitch deck is a short slide presentation that explains your business to potential investors or judges. It typically covers the problem you're solving, your solution, your target market, your business model, your plan, and how much funding you're asking for. Keep each slide focused on one idea so it's easy to follow while you talk. To see what strong decks look like, check out these startup pitch deck examples for high school founders.
2. How much investment should you ask for as a teen founder?
Your ask should be based on what your business actually needs. Start by setting specific goals for your business, then estimate your expected costs for the next 6 to 12 months. Adding those costs up gives you a figure you can explain and defend. A clear amount tied to a plan makes you look far more prepared than a round number you picked out of the air.
3. How much of your company should you give to investors?
There's no fixed percentage, since the right amount depends on how much money you're raising and what your business is worth at that stage. The less you've built, the more of your company an investor will usually ask for in return. That's one reason grants and competitions are a smart first step: they let you build traction without giving up any equity. If you do get an equity offer, have a parent, guardian, or legal professional review the terms with you.
4. Do you need a registered company to raise investment as a teen founder?
You need a registered company to take money from an equity investor, such as an angel investor or a VC firm. If you're under 18, a parent or guardian will usually handle the registration for you. Many other funding options don't require a registered company at all. Business competitions, scholarships, and grant programs are all open to teen founders without one.
5. Can you pitch your business without a product?
Yes, you can pitch your business before you have a working product, while you're still at the idea stage. However, investors will usually value your business lower than if you had a product to show. You'll also need proof that people want your idea, such as customer research, a simple prototype, sign-ups, or feedback. The more evidence you bring, the more seriously judges and investors will take you.
6. Can you say no to an investment offer as a teen founder?
Yes, you can turn down an investment offer if it doesn't fit your business goals. Before you accept any offer, look closely at the terms, including how much equity you'd give up, any repayment obligations, and what the investor expects from you. A bad deal can cost you more than it gives you. It's always worth reviewing an offer with a parent, guardian, or legal professional.
Competitions are tough to win, and investors want proof before they'll back you, so where do you start? Young Founders Lab pairs you with expert mentors to build a revenue-generating startup you fully own, then gives you a Demo Day to pitch it to potential investors and industry experts. Apply here. If your team is aiming for a competition like the Diamond Challenge or Blue Ocean, YFL's Pitch Competition Prep Program helps you build a polished pitch deck and submission video over 10 weeks.