If you wants to startup any Business. Then the two which are very essentially needed are which business you to open and the next things which is most required is the fund .Which is used for the smooth running of any business. Usually the startup can raise fund through loan. These loans can be raised from bank. Apart from banks there are many financial institutions that also help in raising fund for the startup. These funds can be used by the startups to run their business. In this blog we will describe various ways to raise fund for the startups.
10 Ways a startup can raise Fund:
- Bootstrapping: In this the startups raise the fund from the own saving or from the investment done by the startup firm. This kind of fund raising is usually called Bootstrapping. Raising fund through this method is very simple as there is not documentation is required. The reason of no documentation in this kind of fund is that it is your fund. Which you have collected in the form of saving. Plus individual can raise fund from the family.
- Angel Investment: Angel Investment is such like if someone likes your business model and wants to do the investment in your business. In return those investors take the equity ownership of the business model. There are many Angel investment firms are there like Google, yahoo, alibaba etc. These angel investment firms have done funding to many startups. Who later on performed very well.
- Venture capital: It is kind of funding which is used for funding for new business or growing business. It usually comes from the venture capital firm. These firms are specialized in building high risk portfolios. By doing this kind of investment the venture capital firm take equity in the startups.
- Loan from NBFC: NBFC stands for Non-banking Finance Company. Non-banking Finance companies usually provide easy loan to the startups. Loan from the NBFC companies can be easily obtained. The reason behind this is that they require very less documentation to approve the loan.
- Startup India: If any individual wants to startup the business in India. In that case he/she can easily raise the fund through the startup India .The startup India was launched by PM Modi. In this they have provided many facilities like one day registration, no tax for initial three year, easily loan from bank etc.
- Crowd Funding: In this the fund is raised from the large group of people. Usually this fund is raised through the social media like people on the Facebook, twitter etc. or from crowd funding platform.
- Incubators: Incubators are like firm which provides the work space and equipment’s to the startups. Apart from this they also provide funds so that the startups get rolled. They also provide guideline to the startups.
- Accelerator: Accelerators are just like Incubators. But the difference between the accelerators and incubators is that they provide guidance and funding for fixed time duration.
- Credit card: Credit Card is usually offered by the banks and financial institutions. By the help of credit cards the startup firm can purchase the equipment .Plus they would earn cash back and reward point. These things like cash back and reward point can be further used to do some shopping.
- Mortgage Assets: In this you can raise fund by mortgage your property with the bank or financial institutions. The property can be in any form like your house, land etc.