Startup funding instruments are various types of financial instruments used by startups to raise capital from investors. Some common startup funding instruments include:

1. Equity: Startups can raise funds by issuing equity shares to investors in exchange for cash. Equity investors become shareholders in the company and share in the profits and losses of the business.

2. Convertible notes: Convertible notes are debt instruments that can be converted into equity shares at a later date. Startups can issue convertible notes to investors as a short-term debt instrument with an option to convert the debt into equity in the future.

3. Preferred shares: Preferred shares are a type of equity that gives investors preferential treatment over common shareholders in terms of dividends and liquidation preferences. Startups can issue preferred shares to investors who want to have a higher priority in the distribution of profits.

4. Debentures: Debentures are long-term debt instruments that offer a fixed rate of interest to investors. Startups can issue debentures to investors who want a fixed return on their investment.

5. Crowdfunding: Crowdfunding is a method of raising funds from a large number of people through an online platform. Startups can use crowdfunding to raise funds from the general public and build a community of supporters for their business.

6. Grants: Startups can also apply for grants from government agencies, foundations, and other organizations. Grants are non-repayable funds that can be used to support research and development, marketing, and other business activities.

It is important for startups to choose the right funding instrument based on their specific needs and the stage of their business. They should also consider the legal and financial implications of each instrument before raising funds from investors.