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HomeTips8 Funding Options To Raise Startup Capital For Your Business

8 Funding Options To Raise Startup Capital For Your Business

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Over 94 percent of new firms fail in their first year of existence, according to recent research. One of the most frequent causes appears to be a lack of money. Any business’s lifeblood is money. A fuel called capital is required for the protracted yet thrilling voyage from an idea to a business that generates income. Because of this, business owners inquire, “How can I fund my startup,” nearly at every step of their operations.

But once you realize the need to undertake the fundraising efforts, some of the several methods of financing are listed below.

1. Starting A Business On A Shoestring Budget:

Bootstrapping, sometimes referred to as self-funding, is a successful method of startup funding, particularly when your company is just getting off the ground. First-time entrepreneurs frequently struggle to secure financing without first demonstrating some momentum and a strategy for possible success. You can put money from your resources or contributions from friends and family toward an investment.

2. Crowdfunding As A Funding Option:

Crowdfunding as a funding option

One of the more recent and well-liked methods of venture capital financing is crowdfunding. The way crowdsourcing operates is as follows: An entrepreneur will post an in-depth description of his company on a crowdfunding campaign. So, customers can learn about the venture and donate money whether they like the concept.

3. Apply for Loans Through Government Programs

The Indian government has introduced several loan programs to assist new businesses, SMEs, and MSMEs as well as fostering the socio-economic development of rural India, women business owners, and educated young people. There should be a category of loans dedicated to your business sector. So, do some market research and apply for loans through government programs.

4. Getting Loans From the Banks

For start-up businesses, banks are viewed as the top priority because they are a more dependable and practical source of funding. The two types of financing that banks offer to new businesses are term loans and working capital loans. In India, almost all public and private industry banks provide loans for new businesses. The rate of interest, loan size, and repayment period offered, however, will differ between different banks.

5. Make use of business credit cards.

Since start-up businesses have become more prevalent in recent years, the use of credit cards for commercial purposes has increased. Using credit cards for payments and promptly returning the balance will help you avoid debt and extra interest rates paid in the form of fines if your company does not initially require large sums of cash.

6. Get Startup Capital For The Company

Get startup capital for the company

This is where the big wagers are placed. Professionally managed funds known as venture capital financing make capital investments in businesses with enormous potential. Typically, they make a stock investment in a company and leave when it goes public or is acquired.

7. Self-Help Lending

Peer-to-peer lending is a sort of money lending in which there are no middlemen during the entire transaction. From lenders who lend money to them as an investment, debtors receive money to spend on their start-ups. The interest rates are usually higher in this process.

8. Making Use of the Accelerator and Incubator

Programs like incubators and accelerators can be a source of startup capital. These initiatives, which can be found in almost every large city, annually support hundreds of new enterprises. Market research has proven that this idea helps in collecting funds to a greater extent.


These are the most common financial methods for starting a business. One of the aforementioned methods will undoubtedly be useful in obtaining money for your start-up business. Prepare your start-up for launch by going through all the bootstrapping steps and selecting the best solution from the available choices.

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