Planning to start your own business? India is experiencing a boom in its start-up ecosystem. Startups are fast becoming both relevant and viable options for people who want to set out on their own entrepreneurial path. However, there are many challenges that you’ll face along the way (and probably more than you were expecting). Startup Funding in India is one of the main challenges that startups will need to address well before everything else; it’s often an area that founders overlook or don’t think about completely – but ignoring this area could be your fatal flaw.
There are multiple ways to fund your business depending on what stage it’s at. The type of startup funding you choose will vary based on how much money you require, how long you need it for, and so on. Below I’ve listed some “top tier” funding options available in India right now:
1. Go for Crowdfunding
The concept of crowdfunding is quite similar to mutual funds on a basic level. In this option, more than one investor is involved and they offer a fixed amount of money based on your business idea, goal, plan of action, and plans of making a profit. All you need to have are people who truly believe in your business idea.
Crowdfunding is gaining popularity as it ascertains the belief that your idea is also believed by other experienced players in the market. Crowdfunding also helps you in getting the crucial funds from the idea stage itself.
You can gather crowdfunding from friends, family, and entrepreneurs who believe in your business concept and have the means to come together and fund your aspiration.
2. Consider Self-funding
Bootstrapping is a popular option for startups or more specifically, bootstrapping is the first step of bootstrapping. What we’re trying to say is that it’s really important to not forget about yourself and your needs and wants as an entrepreneur.
It’s true that you’ll need to talk to other people during important decisions but don’t feel like you have to bend over backwards for them. What’s more important is don’t be afraid to take matters into your hands if it means that you can end up creating something that will benefit even just one person. Remember, there are no stupid opinions only stupid actions based on someone else’s lessons!
3. Venture Capitalists for your Startup funding
One of the surest ways to get investment, venture capitalism is fairly common in high-risk industries like start-ups. Typically with venture capitalism, investors receive shares of ownership in return for their startup funding. These shares are usually only worth something if the business is very successful; most VC-funded businesses eventually do go public or get acquired by larger companies, which allows existing shareholders like venture capitalists to sell their stake at a profit (or at least break even).
The benefit of getting funded by venture capitalists is that they can help you with professional advice and input; for example, they will make sure you have the right business model to succeed in your industry. However, once an exit has occurred it’s often difficult for founders to maintain control over their companies – especially when they differ in opinion with investors about how best to develop the business further!
4. Try Angel Investment!
Angel investment is a type of investing that only the most resourceful and determined business people look into as they offer little or no financial backing. They usually do not directly deal with startups but instead, try to identify those which they believe have vast potential for growth and they might invest as little as $10,000 – $50,000 as they believe such an amount could make a huge difference between potential doom and possible success.
Startup Funding is required to take the best advantage of the existing and upcoming market opportunities. Even if you initially go for bootstrapping, outside funding is required to sustain in the long run.