How to Raise Funds for Startup Business

Raise Fund Startup Business

Funds are the main driving factor behind the success or even start of any business. The visionaries may have the idea but the lack of capital does not allow many ideas to see the light of the day. It is, therefore, essential to have ample starting capital in hand. But, how to attract investors for getting required funds? Listed here are a few tips that can make the path of raising funds easier.

1.Pledge some future earnings

Some business owners are capable of providing future figures as their product is quite promising. They do so by booking the pre-production orders. The promising numbers are enough to inspire the investors to come forward and pitch in the financial aid. Apart from this approach, the receivables are also pledged in lieu of quick money and some fees. But, be prepared for a hefty fee looking at the uncertainties attached with this situation. However, it does come as fast way of raising funds for the business.

2. Go for crowdfunding


Online is proving to be a fast and accurate way of reaching out to the people. There are online crowdfunding sites that give space to the business ideas. So, make the best of this space by writing a story, adding figures and most importantly, by adding a personal touch to your crowdfunding appeal. This can help if you are really out and about to make a change in the world around.

Visit this website and to find how you can use various explainer videos and other elements to make the process of reaching out to the investors more engaging and impactful.

3. Approach the bank for loan

Prepare an irresistible business plan first. Approach the bank with the business plan and find out the loan providing policies of the organization. Work towards matching the documentation requirements for loan so that your application gets passed in one go. The State has lots of policies for promoting businesses by the way of offering loans. You can enquire about them and raise initial capital.

4.Reach out to Angel investor

There are some investors who see upcoming businesses or futuristic solutions for making big money. They need some concrete figures for making decisions. They also look at certain other factors such as: a. Track record of the entrepreneur b. Management team of the company c. Quality of business plan. If you think that making big castles, drawing rosy picture and inflating figures can help in attracting angel investing, you are actually calling for the trouble. Be very succinct, comprehensive and result-oriented in your way of presenting the business idea, this is the only approach that can help in getting an angel investor on board.

5.Go to informal sources

Your ultimate support system, i.e. the family and friends would love to stand by you if you are able to talk in a way that means money for all. Many family run businesses started just by pooling in the mind and resources of the friends and supporters. But, the best way to do it is to come up with legal contracts so that you are taken seriously by your own people.

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