Every
business requires funds for functioning. 94% of startups fail in the first year
of operations due to lack of funds. If you are following Startup Funding News recently, Startups are consistently putting an
eye over competitors To raise funds for giving their business idea, an edge for
growth and expansion. Business News has covered about different sources of finances, that are available, in case
you want to raise funds for your business.
·
Bootstrapping
Your Startup:
Another word for Bootstrapping is Self-financing.
It is the most effective way when you are starting your own business.
First-time entrepreneurs usually have a hard time securing funds for their
business ideas to prove potential success. While some businesses require
capital from the starting day, hence, Bootstrapping may not be a good option.
·
Crowdfunding:
It is one of the newer ways of funding a
start-up that has gained popularity. It is similar to taking a loan, pre-order,
contribution of investments from multiple persons at the same time. In the case
of crowdfunding, an entrepreneur puts a detailed description of his business on
a crowdfunding platform where he mentions his vision, revenue generation model,
how much funding required and for what purposes, etc. and investors can
contribute if they liked the idea. According to Startup Funding News, brilliant startup ideas raised their initial
capital through crowdfunding.
·
Angel
Investment:
Angel Investors are individuals with a keen
interest to invest in upcoming startups and of course, they have possession of a
surplus amount of money. While Angel Investment has certain shortcomings as this
type of investors invests low capital than Venture capitalists.
·
Venture
Capitalists:
These
are the best bets where entrepreneurs have their eyes on. Venture capitalists
work through professionally managed funds that have a higher potential. These
capitalists offer expertise, mentorship to where the organization is going.
Also, VC’s has a short leash and usually looks for recovering their complete
investment within a period of 3 to 5 years.
