Want to start your business? Have a great idea to succeed? You have the determination and will, plus you know you will make it. If that’s the scenario, then don’t worry about startup funding in India.
Because given below are some tips on ‘How to raise funding for startups?‘
Personal investment is one of the most effective ways to finance your startup. Even when you approach someone for startup funding, they still have this question. How much capital have you used for your startup funding? How much have you invested in your business? Are you using your savings? Investing in your startup with your own savings is awesome for the first-timers. It teaches you a lot of things.
From saving money to utilizing it resourcefully, you learn everything. In the last stages of business, you can opt for business loans from lenders for the stability factor.
An Angel Investor
The ones who have surplus cash are angel investors. These beings have an interest in the startups in India and globally. The risk involved with angel investors is always more than other investors.
That’s because angel investors plan for higher returns on profit. And, for this, they invest large amounts. The risk and profit factors, both are huge with angel investors. The most popular angel investors in India are the Mumbai Angels, Hyderabad angels, etc.
Indian Angel Network is also included in the list. Most startups directly contact angel investors for their startup funding.
Crowdfunding generates a massive amount of funds for startups. It’s a technique of gathering funds from investors online or via web-based platforms. It’s done for business purposes. Online crowdfunding portals raise funds for charities, ideas, social causes, and so on.
This idea of startup funding promotes social and cultural causes. That’s one of the best things about it. India has leading crowdfunding platforms like Ketto, Milaap, Wishberry, etc.
Loans Under Government Schemes
The Indian government brings forward many schemes to benefit startups, SMEs, etc.
There are schemes that promote the socio-economic growth of rural India. Plus, educated youth, women entrepreneurs, villages, and others are also taken care of. Loan schemes for startup funding in India include –
- MUDRA Loan scheme
- Start-up India
- PMMY (Pradhan Mantri Mudra Yojna)
- Credit Guarantee Fund Trust for micro and small enterprises (CGTMSE)
- Make in India
- Atal Innovation Mission
- TREAD (Trade-related entrepreneurship assistance and development)
Banks are the first priority of startups for funds. Banks are a reliable and convenient way of getting money for your startup. Banks provide funds in two forms –
- Working capital loans
- Term loans
The public and private sector banks both provide loans for startups. The interest rate varies from bank to bank.
Start your operations without an Entity
If you are looking for start your operations in one country without register an entity, an EOR company can help you. They have the experience and knowledge to help you streamline the processes and establish your presence in the country reducing risks.
Save time and money partnering with a trustworthy EOR Company such as INS Global.
So, you have them all. The famous techniques for startup funding are listed above. Out of all the mentioned tips, you can choose the one that suits you the best. Get ready for startup funding in India. Begin your bootstrapping process. Launch your startup by selecting the best available options for you.
Wishing you all the best for your startup!