14 Ways to raise funds for your startup
According to a recent survey 98% of new startups are failing during their first year of operation.Lack of money is one of the main reason to close their operations with in one year.An entrepreneur without funding is a musician without an instrument.So Funds are the bloodline of any business.In the long journey of starting a startup and making into million dollar company every startups need a fuel calledmoney.For this reason , at almost every level of the business, young entrepreneurs find themselves asking different questons like Getting funds for startup
funding for startup in india? government funding for startups in india?
angel investors for startup business? investor for start up business? Getting funds for startup
seed funding for startups in india? how to get startup money?
Funding to Start a Business? Need Start Up Money?
Startup Capital for Small Business? Money for Startups?
Money for Business Startup? Business Start Up Grants?
Raising Money for Startup Business? Money to Start a Business?
How Do Startups Raise Money? How to Raise Startup Funds?
Ways of Raising Money? Raise Money for Business Idea?
Money for Startup?
These questions may look differently but their main motive is to –How do I finance my startup? or to get huge funding for their startups.
Nowadays, when would you require funding depends largely on the type and type of the business. Although when you have realized the need for fund raising, below are some of the various several sources of finance available.
14 ways to raise Funds for your startups is a comprehensive guide that prospect list of 14 funding options for startups that will help you raise capital for your business. Many of these financing options are for indian business or startups, however, similar alternatives are available in various other countries.Initial capital for startup
Self-funding, also known as bootstrapping, is a powerful way of startup financing.It is one of the ways to raise funds for your startup.Bootstrapping in business means starting a company|an enterprise|a small business without external help or capital. Such online companies or start up companies fund the development of their company through inner cash flow and are cautious with their expenditures and bills. This is actually the oldest and the most preferred form of financing your startup. The local kirana (grocery) shop in your neighbourhood was always bootstrapped by an enterprising merchant or owner. Business owners, till today, prefer bootstrapping over any form of external financing as it results in no collateral dilution. Experts recommend bootstrapping your startup as long as you can. so its also good way to boost money for new venture or start-up in India.
2.Family and Friends
The best choice for a startup is friends and family. It is one of the ways to raise funds for your startup.You’ll be able to raise the funds from them simply for giving equity stake within the company. If you recognize anyone your friends WHO wish to hitch your startup or wish to speculate then simply offer them equity and lift the funds. Thus its additionally great way to lift cash for startup in Asian countries.
It is one of the ways to raise funds for your startup.An increase within the variety of contests has hugely helped to maximise the opportunities for fund raising. It encourages entrepreneurs with business concepts to line up their own businesses. In such competitions, you either got to build a product or prepare a business set up.
Here we are giving the list of start up competitions that could help your start ups for raising funds.
|COMPETITION NAME||WEBSITE LINKS|
|1.The Institute for Entrepreneurial Leadership Next Level Business Plan & Pitch Competition||http://www.ifelnj.org/index.cfm?fuseaction=page.viewpage&pageid=676|
|2.Euro Start Enterprises Startup Competition||http://www.eurostartentreprises.com/startup-competition#.Vw6qw5MrK1s|
|3.The Hult Prize 2016 (Wildcard Round)||http://www.hultprize.org/|
|4.2016 Aging in Place $50K Challenge||https://app.reviewr.com/aarp/site/AARPfoundation|
|5.Vocus Upstart 2016||http://www.vocusupstart.com.au/|
|6.South Summit Startup Competition||https://www.southsummit.co/competition|
|7.The Postcode Lottery Green Challenge||http://www.greenchallenge.info/index.php/competition/entry-criteria|
|8.GITEX Technology Week Startup Pitch Competition||http://www.gitex.com/Content/Startups|
|9.CodeLaunch Pitch Day||http://www.codelaunch.com/Benefits/Index|
|10.New York StartUP! 2016 Business Plan Competition||http://www.nypl.org/locations/tid/65/node/95979|
|11.Axel Springer Plug & Play Accelerator||http://www.axelspringerplugandplay.com/|
|12.The 2016 Mentor Capital Network Sustainable Business Plan Competition||http://mentorcapitalnetwork.strikingly.com/|
|13.Global Startup Competition||http://archgrants.org/competition/|
|14.Global Entrepreneurship Network Startup Open||http://wearegen.co/startupopen|
|15.Slush 100 Pitching Competition||http://www.slush.org/|
|16.2016 U.Pitch Competition & Showcase||http://futurefounders.com/startup/upitch/|
|17.Burton D. Morgan Business Plan Competition||https://www.purdue.edu/discoverypark/bdmce/competitions/index.php|
|18.The Pitch 2016||http://www.thepitch.uk/|
|19.University Startup World Cup||http://universityworldcup.com/|
|20.ST50K Startup Competition||http://www.1st50k.org/|
|21.Web Summit ALPHA Programme||https://websummit.net/startups/alpha|
|23.Schoolpreneur.Biz Business Competition||http://www.schoolpreneur.biz/home.html|
|24.SEEC Idea Pitch Competition||http://www.ut.edu/seectampa/pitch/|
|25.Global Startup Battle||http://www.globalstartupbattle.co/|
|26.Get In The Ring||http://getinthering.co/|
|27.Seedstars World Startup Competition||http://www.seedstarsworld.com/startup-competition/|
Crowdfunding is one of the new ways to finance a new venture that has gained much popularity in recent times. It ‘s like taking a loan, pre-order, contributions or investments of more than one person at a time.It is one of the ways to raise funds for your startup..
Here’s how it works crowdfunding – A businessman will provide a detailed description of your business into a platform for crowdfunding. He will discuss the goals of your company, it plans to make a profit, the amount of money you need and why, etc., so consumers can read about the company and give the money if they like the idea. Those who give money are making promises in line with the promise of pre-purchase of the product or make a donation. Anyone can contribute money to help a company who truly believe.
Why you should consider crowdfunding as a financing option for your business:
The best thing about crowdfunding is that it can also generate interest and support for the marketing of the product and the funds as well. It ‘also a great help if you do not continue if there is no demand for the product works. This process can reduce the financing investors and professional brokers putting in the hands of ordinary people. It could also attract investment of venture capital on the line if a company has a very successful campaign.
Note, also that crowdfunding is a competitive place to gain support, so if your business is absolutely solid rock and can catch the attention of the average consumer by only a description and a few photos online, crowd funding wont work for you till the end.
Several crowdfunding websites might have a different approach, but overall the concept is simple – you send your project to a large group of users of those sites, or “potential investors” and that will finance your startup if they are interested in the startup. You can start a crowdfunding free exercise because you will be charged only when your startup has raised the funding. There is nothing to lose and this concept is ideal for advertising.
Here we are giving the list of crowdfunding websites
5.High Networth Individual person or businessman
A lot of high networth individuals in India who wish to invest in new business or startups and expects the high rate of return for their investment. It is one of the ways to raise funds for your startup.They are not not an angel investors, but people can call on these investors to their implementation or to raise money for their startups. so it’s a better way to find anyone who is interested in your idea and required money or funds given for your startup Resources to start. Its also a good way to raise money for the launch in India or anywhere around the globe.
There are a lot of impact investors also in India and other countries. These type of investor is to incorporate a origination that is to invest in social entrepreneurship venture and expects very low return on investment. so it’s a better way to raise money for its start-up in India and other countries.It is one of the safest ways to raise funds for your startup.
Here we are giving some of the resources for Impact Investors
|Michael & Susan Dell Foundation (MSDF)||http://www.msdf.org/|
|Khosla Impact Fund||http://khoslaimpact.com/|
7.Accelerators and Incubators
Accelerators are like a teacher to guide you on your startup as a faculty of the university. They provide you Mentorship, funding and there are many things. They have fixed tenure and terms. Startups have to give a equity for these accelerators from 2% to 10%.
Incubators is also a significant contributors in Startups. Incubators are sort of a institutes that provides you also the operating area sort of a workplace for your work. however they take the stake quite more as compare to accelerators.
These programs usually run for 4-8 months and need time commitment from the business owners. you’ll even be able to make good connections with mentors, investors and different fellow startups using this platform.
Here we are providing the resources of Accelerators and Incubators According to major cities in India
Angel investors are people with excess money to invest money in startups and they have keen interest in the next start-ups. They work together in groups of networks to consider the proposals before investing. Angel Investors also offer mentoring and counseling besides capital.
Angel investors have helped to start many well-known companies, including Google, Yahoo and Alibaba. This alternative form usually occurs in a company early stages of growth , and these investors expects up to 30% equity. They prefer to take more risks of investments for higher returns.
Angel Investment as a financing option also has its weaknesses. Angel investors invest smaller amounts than venture capitalists.
Find the resources for angel investors below 9th topic,we gave list of resources angel investors and venture capitalists jointly
9.Get Venture Capital For Your Startup
Venture capitals professionally managed funds that invest in companies that have huge potential. Usually they invest in a company against the equity and exit when there is an IPO or an acquisition. VCs provide expertise, guidance and serves as a litmus test of where the organization is going, the valuation of the company by the sustainability and scalability standpoint.
A venture capital investments or their funds may be suitable for small businesses or startups that are beyond the start-up and already generating revenue. Fast growth companies such as Flipkart, Uber, etc. with an exit strategy already in place can earn up to tens of millions of dollars that can be used to invest, network and grow the company quickly.
However, there are some drawbacks to Venture Capitalists as a financing option or funding option. VCs have a short leash when it comes to the company’s commitment and often appear to recover their investment within a time window of three to five years. If you have a product or service that lasts longer than that to get in to the market, then the venture capitalists may not be very interested in you.
They usually seek greater opportunities that are a little more stable, companies or startups having a strong group of people and a good grip over their concepts and business. You also need to be flexible with your business and sometimes to leave a little more control, so if you do not like too much guidance or mentorship, this could not be your best choice.
Below are the important links of angel investors and venture capitalists for funding your startups
10.Raising Funds From Government Institutions
Startups or new small business can raise the money from Governments Institutions in India.It is also good source to raise from goverment institutions there are some Central Government Institutions and Some State Government Institutions which provide funding for new startups if they full fill their required criteria.
Here we are giving some sources for funding from Central government and different State governments.
|Central Government Schemes for Funding||Website Links|
|4.NABARD Financial Support||www.nabard.org|
|5.Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)||www.cgtmse.in|
|State govt Schemes for Funding||Website Links|
Various Banks provide loans to startups or new business depending on the entrepreneur profile like his qualification, technical experience and his experience in setting up new projects.They also give collateral free loans and charges the interest.
We are giving one resource where you can find Various Bank Schemes in India and you can download their application forms from this website .
Corporate Investors are very big players in technology like google,microsoft,Intel and samsung etc.It is one of the ways to raise funds for your startup. They only funds the startups with innovative ideas or an idean which can solve a social problem in a society.Getting funds from them is very hard but if your idea is unique and innovative you can get funding from them easily.
Here are the some of the websites of Corporate Investors for funding
|Corporate Investors||Website Links|
|3.Ibm venture capital group||https://www.ibm.com/midmarket/us/en/venturedevelopment/|
13.Customer or Client advances
If you need any advance money for your product you can also take it from clients or customers so that it acts as interest free loan for your startup.
If you fail to get funding from above mentioned 13 ways to raise funds for startups.At last you can try your personal credit card for funding your startup you can purchase assets for your startup through various online portals which give cashback offers for using credit cards.
We hope these “14 ways to raise funds for your startup ” helps you to get funding for your business or startup