Every startup begins with an idea but the most crucial part is to raise funding for startup. While setting up a startup the main thing which always comes to mind is about the funding. In the initial stages it gets very tough to fund the startups especially when you have a lot of areas which require a lot of funding. Investment is the essential key for the growth and development of a startup especially when you are new. So, here are some ways to raise funding for startup. In the recent years, a number of startup’s have come up in turn increasing the competitiveness due to which it has become quite difficult to raise funding for startup but there are also a number of sources that can be relied upon to raise funding for startup some of which include:

Loans and bank policies supporting to raise funding for startup, Although it is not easy for a startup to get a loan without any assets, this option can still be considered as there are various schemes for small businesses. In order to raise funding for a startup, personal loans can also be used.

There are times when you will look to VCs to raise funding for startup. It is no easy process to fundraise. For instance, if you talk to 100 investors, 5 may say yes, and this will help you to achieve success. For this instance, you are probably looking at VC. The thing to remember is that VC money drastically increases your exit price.

This type of investor closely resembles VCs in every aspect. However, they vary in terms of ROI channels. Angel investors can also choose between taking an equity share or a convertible debt.

Government schemes and initiatives to raise funding for startup

Government also provides schemes to help small businesses to grow. Mostly there are state wise schemes that can help raise funding for startup. Moreover there are schemes under Micro Units Development and Refinance Agency Bank which provides funds to the small and medium enterprises.

Online resources are also available to raise funding for startup. Some popular sites allow private individuals to contribute to the capital. Your business compatibility with the funding site will inform your choices. However, having a solid business portfolio attracts more investors.

Your day job

Side hustling can always be an option to fund your own business. You should never leave your ongoing job even if you are on the way to grow your startup. Side hustling can also help you to make links with companies which can help you not only raise funding for startup but also to expand.

Help from family and friends

These are the people that are the most treatable. So when in need it can be great to ask for help from family and friends when kicking off and immediate need to raise funding for startup because they can also provide you with good advice which can be of great benefit for you. There are disadvantages to this option as well but then, all the things have their advantages to

Non-profit organisations can also be asked for donations when in need to raise funding for startup. Here the proper plan for startup is required to attract investors as a number of these organizations work for the cause. And help in raising donations.

Contests aimed to raise funding for startup

Various competitions take place between different startups to attract investors to raise funding for startup. Here startups are required to prepare good and presentable plans to showcase their unique ideas and which later are presented to investors. Presentations can be done on a group or individual basis. This is also the most common method to fund your startup.

In the end, it depends on the type of business you have and the scale of growth you are trying to cover which determines the suitable way to raise funding for a startup. Businesses can use any of the above mentioned methods to raise funding for startup. One should keep the main factors in check to establish the efficiency in the organisation. To read more visit startup story media.

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