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According to a recent study,

"Over 94% of new business fail during the first year of operation". For many shutdowns of the businesses, lack of funding is a common reason. I believe money can be a powerful weapon which can help you when you enter in the war of competition. 

Many ideas emerge in paper and out of them many get vanished due to lack of funding to take it for R&D and market. Money is another fuel of your business. Many people drop the idea of becoming an entrepreneur mainly because they don't know how to fund their business plan.

Since the importance of money is indispensable therefore, in this Blog, I am going to tell you the different ways by which you can raise the funding of the business without taking any stress.


1. Bootstrapping

Self-funding which is also known as Bootstrapping is an effective way of startup financing. If you are a first-time entrepreneur then it may be hard for you to convince investors to invest in your business. Bootstrapping is also effective because you don't want to lose your own money and for this, you work hard.   In this way you can make an impression in front of investors. In the same way, you take help from your relatives and friends. It is easier since it requires very less paperwork and in most situations, family and friends are flexible with the rate of interest.

2. Crowdfunding

If you are not sure if there will be any demand for the product on which you are working on and want to get rid of professional investors and brokers, you can go with Crowdfunding as an option to get capital for your business. Crowdfunding is like taking a loan, pre-order, contribution or investments from more than one person at the same time.

Some of the popular Crowdfunding sites in India are Indieggo, Wishberry, Ketto, Fundlined, and Catapoolt.

In USA Kickstarter, Rockethub, DreamFunded, one west, and GoFundMe are popular crowdfunding platforms.

Crowdfunding Funding Crowd - Free image on Pixabay

Working of Crowdfunding-
As you are an entrepreneur you put up a detailed description of your business in a Crowdfunding platform, you will have to mention the goals of your business, plans for making a profit, reasons for the need of funding, total fund you need, etc.
People come in these platforms and if they read about your need and like your idea, they can provide fund for your business.


3. Angel investment
Angel investors are individuals who have an excess amount of money.They keep in search of a good proposal and Idea.The take more risks in investment for higher returns.They can also offer mentoring or advice alongside capital.Giant companies like Google, Yahoo and Alibaba got up push-start from the Angel investors.
This kind of investment generally occur during the early stages of the business and investors expecting and up to 30% equity.

 click here to know top Angel Investors in India.

T-Hub - Wikipedia

4. Venture capital-

Venture capitals are professionally managed funds that invest in companies that have huge potential. Companies which have passed its start-up phase and already generating revenue can get Venture Capital investment.
Fast-growing companies like Flipkart, Uber, etc with an exit strategy already in place can gain up to tens of millions of dollars from Venture Capitals.
VCs look to recover their investment within 3 to 5 years time window.
If you have a product that is taking longer than that to get to the market, then Venture Capital Investors may not be very interested in you.
Some of the well known VCs in India
are Nexus Venture Partner, Helion Ventures, Kalaari Capital and more.

business angel, dollar, money, investor, investment, venture ...

5. Business Incubators and Accelerators-
are like parents to a child who Nurtures the business, providing shelter, tools, and training and network to a business and help/assist/nurture a business to walk, while Accelerator helps to run and take a giant leap.
In the beginning days of a startup, Incubator and Accelerators can be proven as a good funding option.These programs normally run for four to eight months and require the time and commitment from the business owner.
During this time you can make a good connection with Mentors, Investors and other Counterparts who are using the same platform.
These can be found in almost every major cities.

In India, the popular names are Amity Innovation Incubator, Angel Prime, CIIE, IAN Business Incubator.

File:Coworking-space-di-mall-pp-by-gowork.png - Wikimedia Commons


Now, after so much about ways to funding, its time to take a small break, but wait next five ways are on its way. So stay tuned with Scoobynel to get know about the next Five ways to get funding for your business.

"fire your boss and do whatever you like" a 100$ dollar startup -the best book you can also buy by clicking on it



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