Funding remains a significant challenge for both Web2 and Web3 startups, but Web3 offers unique decentralized avenues for raising capital. Early-stage Web3 companies are advised to secure initial funding similarly to Web2 firms; however, their paths diverge in subsequent rounds. Web3 startups can leverage unique pre-seed and seed funding channels, including grants from traditional and Web3-specific entities, which do not require equity surrender. Traditional institutions like the EU Commission and Santander Bank provide grants, while Web3 giants such as Ethereum and Polkadot offer ecosystem-specific incentives. Web3 incubators and accelerators, like Klaytn and Alliance DAO, provide non-financial support, helping startups develop business skills and prepare for future funding rounds. Decentralized crowdfunding platforms like Juicebox and Gitcoin offer additional resources. In seed and subsequent funding rounds, Web3 companies may sell equity to investors, but often shift to decentralized funding models, avoiding multiple private rounds. Understanding investor expectations is critical, with Web3 placing emphasis on community and network effects rather than just the technology itself. The rise of decentralized autonomous organizations (DAOs) introduces a novel funding model, allowing community-driven investment without traditional venture capital approval. Despite these innovations, Web3 startups must maintain strong fundamentals, including robust technology and a clear business plan, to attract investment, highlighting the importance of joining specialized incubators and communities to bridge skills and network gaps.