Crucial Funding Source For Startups In India

Crowdfunding Your Startup

Among several other funding options, nowadays crowdfunding is getting quite a bit of attention among entrepreneurs. The basic concept behind crowdfunding is that it allows more than one individual to invest in a business. In crowdfunding, the investors are generally required to provide a fixed amount of funding which might depend on several variables including your brand idea, objectives, financial strategy, etc.

Through Angel Investment

When you hear the term angel investors, it usually refers to those people who are always searching for startup ideas that might have some potential, and provide them funds in return for convertible depth or fixed equity in their business. Angel investors can either work alone or even form groups while investing in the startups. And on top of providing the funds, they can also help you with some business advice, to move your business on the right path.

Through Venture Capitalists

Venture capitalists usually refer to those individuals who primarily look for small status who are in the initial stages. And by evaluating their growth potential, and their current standpoint they offer to invest in those startups. However, venture capitalists usually prefer an exchange of equity in return for their funds, and most of them tend to avoid giving debts. As these startups are in the initial stages, venture capitalists are already taking a lot of risk by funding these businesses. Therefore they only prefer to invest in some out-of-the-box business models, or in companies that are leveraging high-end technologies which can include IT, biotechnology, or eco-friendly technology.

Raise Funds Through Business Incubators & Accelerators

These types of funding sources are especially beneficial for startup founders who are in their early stages. The entrepreneurs can try joining some startup programs for raising their funds from startup accelerators or startup incubators. Some of you might have assumed that these two are the same concept, however, there are some key differences between them. In the case of accelerators, it primarily helps to accelerate the development of existing businesses. While in the case of incubators, their main purpose is brainstorming various innovative ideas, so that they can create an out-of-the-box business model. This means the latter one is primarily focused on innovation.

Final Thoughts

Without a proper source of funding, you can’t expect your business to scale and expand. Therefore make sure to go through all the funding sources mentioned in this article, and make a proper judgment depending on the current requirements of your business. And lastly always make an effort to focus on your vision, as it will act as the core of your entire business.

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Adesh Chaurasia

Adesh Chaurasia

I am a Businessman and Entrepreneur. Get the all the Latest News and Updates from me at www.adeshchaurasia.com