Blog Details

Author - Associate Runa Jasia

A startup or startup is a newly established company or business. Any individuals like you and I can start it. You need an idea, a team, some funds, a location, and some paperwork to begin with.

A startup is a newly established business which is founded by an individual or a group of individuals having the same goals. There are many ways through which a startup can start raising their funds for their company. 

Different types of investments available to startups:

1. Angel investors
   Numbers of angel investors are increasing day by day. These groups of investors search for new startup business and invest in them. They research their ideas and background before investing in them. They decide and invest with more confidence having lower risk rate. 

2. Networking
   Networking is not all about making contacts and friends; it is about the growing network to the right people on this globe. It is essential to have a bunch of experts before jumping into a new business. This networking helps a lot to raise funds for startups. The only point is a person needs to know how to create networking with the right people who can help to grow their business. An individual must try to attend all the business meetings and share their business ideas with different investors and business owners. It is crucial to present business ideas, sincerely and transparently. 

3. Loved ones
   It may sound strange, but it is true. Friends and family are always there for help. One can discuss their business ideas and ask them to help financially. One added advantage of this is that there is no time pressure for returning the money. There is no legal pressure, and thus, an individual can rely upon their loved ones. They are reliable as well.

4. Loan
   Bank provides loan for growing and expanding a business. There is a fixed amount of rate of interest added while returning money to the bank. Relevant documents are necessary to get a loan. It depends on the bank when they will pass the loan amount. A person must make sure that they will utilize all of their money for business purposes only. It is worth risk taking. New business owners must decide how they will repay the bank loan. Proper planning is essential to do so.

5. Incubators and Accelerators
   As the name suggests, it helps in accelerating business. These vehicles can ultimately be a gateway to a variety of the types of investors on this list. These programs can act as a golden ticket. If accepted into one of these programs, a business owner may receive anywhere near millions of dollars in seed fund money to invest in the startup business.

6. Pitching
   It is very important for all startup owners to know how to pitch. It is a way to tell investors and relevant people what their business ideas are and what benefits and furthermore profitable their business idea is. It is the best way to describe and share one’s business ideas. Pitching should be done in a compelling and precise way.

7. Startup battles
   Various startup battles are happening around the whole world. It may occur at a global level, local level, or even at a national level. These battles have an award-winning colossal amount. This will often catch the eyes of the investors. It will come to light what kind of people are struggling and what idea they have. After winning the cash prize, chances are high to raise more funds and use that money for the growth of their business. The profit of going to such places is that their networking with people will increase and they can get in touch with investors and can know what’s happening in the current market. It is essential to keep going on such events that will help in the growth of the business as well the business owners and their team members. By going to such events, people will get to know where they stand in the current scenario. 

8. Crowd-funding
   It's one of the most effective and newer ways to raise funds for a startup. An entrepreneur has to put up a detailed description of his business on a crowd-funding platform. Description of his business must be up to the point and very clear, it should not be too long as a story. He will mention the goals of his business, plans for making a profit, how much funding he needs and for what reasons, etc. and then consumers or the investors can read about the business and invest money if they like the idea of their business. Those giving money will make online pledges with the promise of pre-buying the product or giving a donation. Anyone can contribute money toward helping a business that they believe in. 

9. Venture capitals
   A venture capital investment is best for a company on a small scale who are beyond startups. Companies who are growing vastly can go for this option for raising their funds.

10. From own pocket
    Many people tend to go and search for investors instead of using their own money from their personal savings account. It is better to use money from their saving accounts. It is the best way to raise funds for a startup company. If every individual uses their money and collects the amount, they will not need to go in search for other investors.